Thumbnails not working

Hi, I'm working on a site and am having problems with Carousel not showing thumbnails. I always get the full image, or rather the top left corner of it, rather than the thumbnail. I've checked against imceimage, and imce to make sure the thumb_ prefix exists, and have manually created the thumbnails. However, it refuses to see them. Any thoughts?

http://www.digitalgoldworks.com/test

thanks!