You can organize your photos into different albums on your iPod Touch by creating Albums within iPhoto. If you want to organize them with Albums, then you are able to create as many Albums as you desire. You might require creating different Albums for special devices, for instance you will need a separate Album for iPhone or iPod Touch and iPad Wallpapers.
Ive only got them into albums off of my computer (when my computer pics accidentally got synced to my iTouch) and they had the exact album names as they did on the computer. but thats all i know, just thought i'd tell ya my experience ;)