fixed it… for anyone else that might have a problem with this hard coded style the change can be made on approximately line 537 and looks like jQuery('#sets .flickr-set:not(:first)').css({borderTop:"1px solid #D3D3D3", paddingTop: ".5em"});
I am also interested in making this happen. I like the simple Carousel template for nextgen gallery and as he states on his website it could be optimized for AJAX load. It would be great to get the picture and thumbnails (when you set the Image param and it paginates the thumbs) to also load dynamically without refreshing the page.