In the addon admin page, you can see the following info:
This addon will display categories with a thumbnail - links to browse page.
Tags to use:
<ALBUMVIEW> - Shows newest photo for each category.
<ALBUMVIEWPAGED> - Same as above but for use with Paged Archive Addon.
<ALBUMVIEWRAND> - Shows random photo for each category.
<ALBUMVIEWPAGEDRAND> - Same as abover but for use with Paged Archive Addon.