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I'm sorry about the issue, First you need to disable Picasa Albums then Remove them.
click on settings, click on accounts then Google, next click on your gmail account and uncheck Sync Picassa Web albums.
Now go back to the menu and go to settings again, click on application manager (you will see all your downloaded applications) please swipe to right until you find all then scroll down to find Gallery and click on it. click on clear data then Ok, click on Force stop and Ok.
Now Picassa Albums should gone.
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