This is the code in the template.html for the thumbnail.

<A HREF="[IMAGE]" TARGET="_blank"><IMG SRC="[THUMBNAIL]" BORDER=0 ALT=""></a>

ok, that's the problem... the A HREF is wrapping the thumbnail and preventing the download logic from firing...

change the entire text from...

<A HREF="[IMAGE]" TARGET="_blank"><IMG SRC="[THUMBNAIL]" BORDER=0 ALT=""></a>

to ...

[IMAGE]

if you want the image to trigger a download, you can't use the A HREF or IMG SRC tags, as that will just display a image. By simply using the [IMAGE] token and setting the XML DOWNLOAD setting to true, the module will replace the [IMAGE] token with an ImageButton, and then clicking on the image will trigger the download logic.

template.html :  change the TD tag that contains the thumbnail to look like this...

<td width="100" class="Normal" align="center" valign="top" style="padding-left: 6px; padding-right: 6px;">

    [IMAGE]<br />

</td>

template.xml : change the IMAGE token to look like this...

<Object>

   <Token>[IMAGE]</Token>

      <Settings>

        <Setting>

         <Name>DOWNLOAD</Name>

         <Value>true</Value>

        </Setting>

        <Setting>

         <Name>Width</Name>

         <Value>100</Value>

        </Setting>

      </Settings>

</Object>

You can change the width value (the numbers is red) in both files to control the size of the image.