http://bugs.winehq.org/show_bug.cgi?id=10271
--- Comment #4 from Dmitry Timoshkov dmitry@codeweavers.com 2007-11-01 22:03:13 --- Does the problem go away if you run with an english locale?
LANG=en_US wine picasa.exe
If yes, then it's most likely a duplicate of bug 10025.