NextGen-Gallery – Duplicate Photo Files

I noticed that when I upload images or a zipfile, the photos are added to both the database and the Gallery folder. This is for me, a waste of space. It looks like all photo processing is done using the photos stored in the database. Are the photos in the Gallery folder just being used for a backup??

I unchecked the “Creates a backup for inserted images” box thinking that will cause NextGen to not store photos in the Gallery folder, but it doesn’t.

Is there anyway to tell NextGen not to store a copy of the photos in the Gallery folder?