Hi Dennis,
Prior to easysocial 2.0, when a user trying to create an album by first uploading the photos into the album, the system must create an album in order to store the uploaded images correctly even before the user finalizing the album by clicking "done" button hence creating the story stream that you mentioned above. However the album privacy will always become "Only Me" instead of public if user did not finalizing the album.
With this privacy control, any stream items that created by the photo upload will not visible to other users. Once user click on "done" button, the album privacy will instantly change to the privacy that user-specified when creating the album.
Hope these help.