It's gone from bad to worse! I followed your instructions and all the album names seem to have synced across but the albums are empty. My pc is showing that the iPad is using up the memory space for the photos but they seem to be absent. I tried to repeat it all over again and now it won't wipe these empty albums off even I say not to sync any photos at all. Have no idea what to do next.........
To be clear, all of the photos that you want on your iPad are stored on your computer correct? If so, I'd try deleting everything to do with Photos on the iPad and then try to re-sync.
Connect your iPad to your computer. Open iTunes (if it doesn't automatically open) and click on your iPad in the left-hand column. Click on the "Photos" tab in iTunes. Uncheck "Sync Photos From..." and confirm "Remove Photos". Click on "Apply". Disconnect your iPad and shut iTunes down. This will remove all photos, albums, etc. on your iPad. Do NOT do this if you don't have the originals on your computer of course!
Reconnect your iPad, open iTunes, click on your iPad in the left-hand menu, click on the "Photos" tab and re-check "Sync Photos From...". Under that check the appropriate albums, etc. that you want to transfer. (You might even create and check just one small album first to ensure things are working okay before going through transferring all of your photos.) Click on "Apply" and let it sync.
From your description it sounds like a corrupted iPod cache file so hopefully this will correct it. But if not, following Apple's directions to re-create it may be in order.
Hope that helps this time...hang in there...I'm sure that it will work eventually!