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Well … are you referring to Picasa on your computer or Picasa Web Albums?
Picasa on your computer works with the pictures on your computer. Wordpress can upload pictures from your computer – if you used Picasa to edit them, you’ll need to Save those edits before using Wordpress to upload them.
If you’re referring to Picasa Web Albums, those pictures are on the web, when you use Wordpress to insert a picture “From the Web” you just need the URL. Any picture you see on the web – including Picasa Web Albums – can be right-clicked on and copy URL.
Tell me more what you want to do and we’ll go from there.