1. Use the admin control panel to create your categories,
NOT FTP! - very important.
2. Once created, move your mouse over a category in the list under "Edit Categories". In your browser status bar you will see a number which corresponds to the folders that were created in the media/ and thumbnails/ subdirectory for that category.
3. Use FTP to upload your images and thumbnails to those two folders.
4. Go back to the admin control panel and use "Check New Images". Select the category into which you just uploaded your files.[/list:u]
Viola! You just batch uploaded images and thumbnails to a specific category. 4images automatically assigns the category to the images.
Alternatively you can use the auto-thumbnailer to create the thumbnails for you. Follow all the steps described above and just skip the uploading of thumbnails.