In reply to:
I asked question #2 up above because I want to know if there is any sort of maximum number of files per directory that I should be aware of.
You would have to be doing something really crazy to run into any kind of problem with this. Something like running an automated script that creates thousands of files occasionally for no apparent reason, or trying to duplicate an upload service like ImageShack, or things of that nature. Given that your site seems to be completely not any of those things, there's no reason for you to be worried about running into some sort of limit.
In reply to:
I asked question #1 up above mainly because I am not sure how many pictures to include on a page of thumbnails.
Why not let the users decide? 
Often times, sites do some scripting to allow users to choose between either an arbitrary page size or, more commonly, a small number of preset page sizes. You could make the default be, say, 10 thumbs per page, but include options for 25, 50, 100, or whatever, so that users can decide for themselves how to make the tradeoff between clicking "next" a bunch of times or waiting a while for a single page to load with everything.