issues with child pages… help? (PHP IF)

trying to get the gallery to show up right (this site is still in process so ignore the mess) the main issue I am having right now is the child pages. It is showing level 4(?) pages, even though I only want it to show level two… I think…

on the page I linked the pages like “Aladdin 2006” should not show in that list, I set them as child pages of a sub-gallery page (which is a child of the gallery- which is a child of the main pages… make sense? – not to me either lol – but I am still organizing it.

The pages, the individual photo albums are already linked on that page, I do not need them listed above the thumbnails, but I would like their parents listed (gallery 2, gallery 3, videos, flash gallery)

code and link below

https://www.phoenixplayers.org.uk/preview/gallery

<?php
/*
Template Name: Full Width
*/
?>

<?php get_header(); ?>

<?php
global $options;
foreach ($options as $value) {
if (get_option( $value['id'] ) === FALSE) { $$value['id'] = $value['std']; } else { $$value['id'] = stripslashes(get_option( $value['id'] )); }
}
?>

<div id="content" class="wrapper fullWidth">

	<div id="main">

    <?php if (have_posts()) : while (have_posts()) : the_post(); ?>

    <?php $output;
	$has_children = false;
	if (is_page( )) {
	$page = $post->ID;
	if ($post->post_parent) {
	$page = $post->post_parent;
	}
	$children=wp_list_pages( 'echo=0&child_of=' . $page . '&title_li=' );
	if ($children) {
	$output = wp_list_pages ( 'echo=0&child_of=' . $page . '&title_li=');
	$has_children = true;
	}
	}
	if($has_children == true) : ?>
    <div id="galleryHeaderContainer">
    	<div id="galleryHeader">
    	<ul id="galleryTitles">
        	<!-- <?php wp_list_pages(0, 'include=' . $page . '&number=1&title_li=' ); ?> -->
			<?php
			echo $output;
			?>
		</ul>
	</div><!-- end gallery header -->
    <div class="clear"></div>
    </div>
    <?php endif; ?>

    <?php the_content() ;
    endwhile; else: ?>