thumbnails do not show

Try 755

That did not work either.
The host which sucks is network solutions.
I don't know if that helps?

(I did not pick that host trust me Ivan!)

It could be, but loading image is something even worst host should support, double check everything

The host has an option to reset all file permissions. Should i try it?
I am afraid it will break everything else

You images must be shown in browser when you enter their direct links. So, you are either missing the correct folder or your images should have permissions set to 777 (which is really unusual and unsafe server setting).

It was the image settings. They did not inherit the folder settings.
Is 755 adequate?