Well, there are still a lot of internal problems going on in Algeria, the government is fighting against those Islamic Fundamentalists. I'm not well informed and I never visited Algeria before but a few friends of mine did and they never had any problems.
Most people visit the Sahara anyway and travel from Algeria to Libya, Niger or other African countries. As far as I know, the problems are mainly in the urban areas and not in the desert. Keep in mind, where ever you go it could be "unsafe".
Smooth as silk - Royal Orchid Service /// Suid-Afrikaanse Lugdiens - Springbok