Hmmmm. It works on my setup. Make sure the category id (cat=X in the URL) is 1. You may be missing a different category for the users.

Essentially all I added was code that says, if the categoryID isn't 1 (automatically created when installed for the member albums) or if you are an administrator of the photos module, then you will see the link; otherwise you won't.

So, make sure that links is to category ID 1. If not, change the template code to be <> X, where X is that particular category ID. This is obfuscation, not depermissioning.

Also, make sure you have cleared your cache and such as well.