Needhelp with images and thumbs on home page

[Ritarun]

I am stuck. I have read the tutorials, re-read the tutorials and searched the forum. I can't seem to get two things to work.
First - I can't get the images to show up. They look like they rotate but all I see is a black box, the striped loaded bar, the titles and one of the thumbnails at the top.

Second - I can't get the auto-thumbnail feature to work for the posts on the home page. I'm using verison 3.0 of Agent.
I've gone thru the steps in Brian's post (deleting the blog url, the pictures are on the domain the site is using, the tools/cache has the correct permissions.

It worked oK in Version 2 but for some reason can't get the new install of Version 3 to work.

URL: http://serenacrossfield.net/lcp-final/