At last Picasa web albums now use Google account holders public Google profile. This connection will display your name and profile photo on your albums and next to your comments. Picasa officials said that this will help improve your experience in two ways. Firstly, friends can see and recognize whom they are interacting with and secondly if you use multiple google products, it will be easier because this feature enable updating profiles in one place.
This new feature will not effect on your privacy. Because public albums will remain public, and private albums will remain private. Now, you can edit Google Profile to change display name, profile photos. You can change your Picasa Web Albums address easily.
Just go to http://picasaweb.google.com/home now and explore this new feature.