Strange problem with NEW product thumbnails not showing up

[alexismya]

Hello. I upgraded to 1.1.9 Virtuemart and I see thumbnails for all of my current products. But, when I go to add a NEW product, the thumbnails do not show up. Can anyone please help me find the solution?

What I have done:
1. I add the photos through Virtuemart and can see the large photo, but not the thumbnail in the Administrator panel. The thumbnail for the product is missing online.

Here is a link to the problem. When you click on the link scroll down to see Plumbers Waxy Plug product. You will see the thumbnail is missing.
http://blackswanmfg.com/black-swan-store?page=shop.browse&category_id=1&option=com_virtuemart&Itemid=73

[GJC Web Design]

If the thumb is not there in admin then it is a thumb creation problem.. check logs (memory problems?) --

but I see a waxy plug thumb..