If you purchased the theme legally from Theme Forest (and didn't ILLEGALLY download it for free), there should be a help file.

Sorry, which help file are you referring to? I didn't see any mention of thumbnails in the help file included with the wp university theme zip folder.
Thanks again for your help and work.

1. Per the help file, the thumbnail is generated from the FIRST image UPLOADED to a post.

2. The media gallery is for site-wide use, so to have an image represent a specific post, it needs to be uploaded from that post.

Hope that helps. If you continue to have issues, please read this thread: http://www.themolitor.com/forums/topic/important-requirements-for-the-thumbnails-images-to-work

Another quick question...just to clarify.

1. Thumbnails are only created on new posts, on the first image inserted in the post? correct?

2. It appears that thumbnails are only created from files that are directly uploaded from the computer into a new post. It doesn't seem to create thumbnails on photos that are added to posts which have come from the media gallery. (photos that were previously uploaded to wordpress) Is that correct?

So far in my testing, I have been unable to get an image that currently exists in my gallery to create a thumbnail within a new post.

True. I see now that testing does prove that larger files do encounter problems.

However, vertical photos do cause problems as well...thumbnails will be created BUT they will be stretched and cropped in weird ways.

The BEST thumbnails are created from horizontal images. Interesting, but quite limiting.

Due to the nature of the featured area on the main homepage...one is also forced to use horizontal images as well. Not a bad thing, just an observation.

Thank you for answering.

Dimensions should not play a factor, but take note of the file size. If the image is too large, you may encounter issues.

I am doing some testing to make sure I understand why thumbnails are created on new posts and show up on the homepage...and why they don't.

Is it possible that photo dimensions can play a factor? For example, I cannot get portrait images (vs horizontal images) to create thumbnails.

I am testing with brand new posts...have cleared the cache...am watching to see when thumbnails are added to the cache

Thanks