Yes, there is a library and no, my pictures go where I tell them to go. You can't go to an album and upload pictures directly to that album by default. No matter what album you are in, you have to choose from the drop down what album the pics download to or they will download to the general library.
Yeah, I do that, and doesn't matter- mine still go to the general library.
Where they disappear for perpetuity in the few thousand pics there.