I tried to upload as I stated and this told me permission are not set correctly on your install as I posted this above. You can not upload to it as a result
As a result as well you most likely do not have permissions set correctly in your data directories which would mean thumbs can not be created
Here is the installation instructions which list the full permissions files and directories need to be for proper operation of the program
http://www.photopost.com/installphp.html
Until you set the permissions correctly the program will not operate correctly.