Picasa Web Albums: can't download my album to Picasa Web Album

I am trying to download an album of pictures out of Picasa to Picasa Web Album without success. I have followed the Picasa instructions without success:
In Picasa, select pictures to download
Click on Web Albums
Click yes on Internet Explorer's security warning
Picasa Web Album screen comes up with my album showing
Click on the Upload Photos icon
A new screen pops up called Picasa Web Album - DonA - Vacation

Apparantly at this point the download is supposed to begin. At the bottom of this screen is a message next to the inactive progress bar, saying "waiting for photo selection."

The remaining buttons not grayed out are
Add Photos. This takes me to my C:\ drive where I can navigate to where the photos are. This doesn't work because it doesn't have my
sort order and doesn't have the labels I put on the pictures in Picasa
Launch Picasa. This returns me to Picasa, where I can clearly see my desired pictures are still selected.
Cancel. Which doesn't help either.

My Picasa Web Album shows 0 MB Storage used.

Nothing else is happening on the screen. It just sets there without downloading anything. What am I missing?

Thanks for your help.