Drupal Embeded Module " Page Not Found Error" Linking To Album

| Drupal 6 | Drupal Gallery Module | XAMPP |

Ok here is my situation. I setup Gallery, on my test server. When I move the gallery block to a region, I can see my album I created in gallery fine. But when I click on the Album, all I get is "Page Not Found". I have tried everything I no, with no luck.

This is were my files are at
Gallery- drupal2/modules/gallery
Gallery2 drupal2/modules/gallery/gallery2

C:\xampp\htdocs\drupal2\modules\gallery\gallery
C:\xampp\htdocs\drupal2\modules\gallery\gallery2

________________________________________________________________
.HTACCESS FILE:

<IfModule mod_rewrite.c>
RewriteEngine On

RewriteBase /drupal2/

RewriteCond %{REQUEST_FILENAME} -f [OR]
RewriteCond %{REQUEST_FILENAME} -d [OR]
RewriteCond %{REQUEST_FILENAME} gallery\_remote2\.php
RewriteCond %{REQUEST_URI} !/drupal2/$
RewriteRule . - [L]

RewriteCond %{THE_REQUEST} /drupal2/d/([0-9]+)\-([0-9]+)/([^/?]+)(\?.|\ .)
RewriteCond %{REQUEST_URI} !/drupal2/$
RewriteRule . /drupal2/modules/gallery/gallery2/main.php?g2_view=core.DownloadItem&g2_itemId=%1&g2_serialNumber=%2&g2_fileName=%3 [QSA,L]
RewriteCond %{THE_REQUEST} /drupal2/v/([^?]+)(\?.|\ .)
RewriteCond %{REQUEST_URI} !/drupal2/$
RewriteRule . /drupal2/?g2_path=%1 [QSA,L]
</IfModule>

_______________________________________________________________________________

Drupal Gallery Settings

PHP Memory Limit OK Gallery2 operation.
Gallery2 locations OK The Gallery2 location settings appear to be correct.
Drupal Modules / Gallery2 Plugins OK
Clean URL / URL Rewrite OK There is a writable .htaccess file in your defined Drupal directory (C:\xampp\htdocs\drupal2/). Your 'Show Item' rule should start with 'modules/gallery/gallery2//'. Make sure to change the URL Rewrite rule(s) accordingly.
Initial User Synchronization OK Your initial user synchronization has been completed already.

Gallery2 Location Settings:

Gallery2 URL or URI: http://localhost/drupal2/modules/gallery/gallery2/
Gallery2 filesystem path: C:\xampp\htdocs\drupal2\modules\gallery\gallery2/
Embed URI: /drupal2/index.php?q=modules/gallery/gallery2/
Gallery base: modules/gallery/gallery2/

Clean URL/ URL Rewrite Settings.

Public path to your .htaccess file: /drupal2/
Filesystem path to your .htaccess file: C:\xampp\htdocs\drupal2/

Thanks Tomek for your reply. Ok I removed Galler3 and installed Gallery 2 version 2.3.1 Full.
When I got done installing the Gallery2, went into drupal Gallery Settings and rebuilt the install.
Then opened my Photo page, I can see the test album that I created, but when I click on the Thumbnail,it shoots me
to a "Page Not Found". All I want the block to due is show the Album, and when you click on the album it shows you
the images within the Album. What am I missing?

Tomek, How was you able to tell I was using G3 with Drupal Gallery 2 Module?