I finally found a way around this.
Use a ftp program like filezilla and go to the gallery folder that is causing a problem creating thumbnails. Create a folder there called “thumbs” (without the quotes). Then just create new thumbnails in manage gallery.
This fixed it for me.
Thread Starter
mobs00
(@mobs00)
Update:
Mike was kind of enough to fix the problem I was having and released it in a new version 1.7.4 – (03 Oct 2009)