Once tracks are in the Playing Now playlist, they play one after the other. You can set Repeat to Repeat One or Stop After Each Item, but Playing Now has no notion of an Album.
Instead, only add a single Album to the Playing Now list. Or clear those tracks from Playing Now that you don't want played.
Okay - so... I go into say, the Gizmo Web interface, choose Audio -> Albums, pick an album and click on the "Play All" at top.
It plays the album through then starts on the next album in the main list.
It does that with Video too, but I usually select Video files from JRemote.
I'm pretty sure I have something screwy, just not quite up to finding it.
Thanks
-Paul