Outlook mail & photo gallery

I had to get a new laptop and I got Windows 7.  I also ended up with Outlook mail and a new photo gallery.  I was perfectly happy with the way my old photo gallery worked and my Hotmail.  Now, in window live photo gallery my pictures are  in two or three, or more sections or groups; they're not all together in one group.  Then when I want to add a pictures to email, and I click "insert" I have to chose "files as attachments" and then I have to choose "pictures".  But then I get a bunch of folders that I have to sort through and not everything is there that is in photo gallery, broken up as it may be.  How do I live with this; how do I manage this?  It was much better before.  Am I missing something?