I am currently exploring where photographs that are posted directly to the blog end up on Picasa. I logged in using the blog "Master " account - rather than using my own google apps identity.
After uploading these two photos from my album I noticed they were stored in an album named after the Blog: Media Team HQ. It has a small Blogger icon on it and is first in the list of the many albums we have created.. By embedding this album onto the blog using the technique described here: http://productforums.google.com/forum/#!category-topic/picasa/picasa-web-albums/gn2MOcnElvI I have ensured that in future any photos upoladed directly into a post will appear in this gallery. I presume all photos will go into this album until it becomes full