1.
Main page, click: "Upload now" (The green button)
2.
Then select: "Customize your upload options"
Visual Photobucket guide courtesy of HeuHen from Shipbucket.com
3.
Then you can choosing "Photo storage sizes" you want. (I have chosen: "Best possible quality (while staying 1mb or less)")
4.
Now you can:
Red Arrow "Select photos and Videos" If you just want to upload photos or Videos.
Blue Arrow: Here you can choosing where to upload the picture or video from.
Pink Arrow: Which albums on your Photobucket, will you upload your photo or video to.
Green Arrow: "Create new album" Here can you create a new album.