This is another feature removal request, rather than a proposal to add something new, in the interests of simplifying the UI.
Under Advanced > Naming, there are two mutually-exclusive options, one to force links to be URL-encoded, and the other to create web-safe file names. I think it's time for both of these to go.
All links generated by the jAlbum core should be URL-encoded. It shouldn't be possible to turn this off. In fact, it's required by Tiger, the default skin. The only reason for turning this off was to allow local preview with IE, which didn't understand encoded links. No one is still using IE to preview albums, or at least, they shouldn't be.
And if links are all URL-encoded by default, there's no reason to try to generate web-safe file names, a procedure that comes with its own problems (like inadvertent duplication of file names).