This issue has now been solved. Please view this post:
viewtopic.php?f=26&t=7829
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We are receiving reports across the board regarding missing thumbnails in Imagevue. Unfortunately the problem was caused by the recent Flash player update. Not only Imagevue is affected, my daughter is unable to do her homework on myimaths.com as well.
We are looking for a way to provide a workaround for this issue, meanwhile you can help everybody to get a fix quicker by reporting this behavior to adobe via their bug tracker:
bugbase.adobe.com
Thank you.
To make your gallery less ugly you can disable preview image in Settings > Menu > Folderdescription > Preview image (uncheck it)
Also you can disable thumbnails scroller at the bottom of the screen when you are viewing images in Settings > Thumbnails > Thumbnail scroller > Enabled (uncheck it as well)
