iPhone, iPad and iPod touch: Syncing photos via iTunes
To have multiple albums you just create folders under the main folder you selected to sync. Only the first level of folder will sync under the main folder will sync. If you choose to sync all photos, all folders will create albums and sync. If you choose selected albums, you can choose which sub-folders will sync.
It's a one way sync. Pictures and folders can only be changed on the computer. I recommend you set up folder specifically for syncing with the iPad, so that you can rearrange/add/delete new photos without risk of accidentally deleting the original photos.