so after revisiting that post and finding out that indeed the registry key gets re-written again I thought I should use brute force.
So here it is, just navigate to your Program Files | Adobe | Photoshop Album Starter Edition | 3.0 | Apps | and look for the infamous Apdproxy and then just rename it as Apdproxyold *note the old at the end of its name*
Next time you start Photoshop Album the pesky critter will be gone. No need for crazy and perhaps risky and unsafe registry keys to delete and no messing with my previous "solution" that at the end didn't quite work. Personally I restarted the program several times and you don't get the annoying thing on your tray anymore and your program functionality still the same.
Try it post your comments and hope this will be the end of Apdproxy.