You need to create main image thumb for each album. In admin area edit your album, click on "View / Edit Images" ( link is after "Album Image Upload") and for each image you have 3 mini icons:
Found the Installation problem. The 2 sites had a "featurebox" plugin in the plugins directory, and when this was removed the compat pref changed to 1 and the beam widget then installed OK.
There is no special settings required for image upload size except the User's upload. So give me some more info 1. Where you trying to upload - admin edit mode, user edit mode or Windows publish wizard...
