There are no current plans to update picstory.
The process is similar to ordinary gallery software: you provide pictures and the program formats them into HTML. But for picstory, as well as providing images and captions, you also write a story into which the pictures fit.
picstory doesn't need a special server. It just builds HTML and other files that you can then upload to any server.
The program is free and runs on all platforms. You will need to feel comfortable editing text files to create your story. (A manual is included in PDF format.)