Image problem in Showcase

This theme is really effective and I want to use it.

But image thumbnails in the post bucket excerpts don't show up. I downloaded a fresh copy, renamed it and loaded it to use on another site. Same problem. See screenshot

I took all the post loops off at my other site, and the buckets show up as text only, but I really would like the options of the images showing up in the buckets.

And how do you use the Portfolio feature?