Bump, since there have been a few posts and I was editing one a few back:

OK, here's what you want to do to enable Thumbnails in Photobucket

- get into your Account Settings by clicking on your username in the top right (it's clickable, with a downward pointing arrow. From there, you can choose Account Settings)
- you'll find yourself in the personal information tab by default, but click on the next one, Album Settings
- The last set of options in Album Settings is Link Options. You can play around with these as you like, but for sure you want to make sure "IMG Thumb" is enabled, for posting here. I personally have all of them checked except flash.

(And, it's a matter of preference, but I have "Link back to my albums" checked, so that people can click on my thumbnail and get to the full picture page. And I also have "Show links in my albums" set to "Only on mouse-over." Otherwise, your albums have more code than pictures on the page!)

Hope that helps.