The example you gave I commented on. Your click issue is because your using displayimage script and that script is in error maybe your trying to do on the fly watermarking and your watermark path is wrong?
Like I said the only issues I see if your not setting the proper sizing of files for the site dimensions. I think if you refine your size settings and verify your watermarking etc as noted you should be fine.
I can gladly look at your settings but you would need to send us an admin login.