In your FTP Client choose the folders that you created within the image folder,
Choose "Get Info" under the file menu (or Right Click On The Folder)

Create the following hierachy of folder inside your IMAGES directory, on the root of you Joomla! installation

albums
thumbs_40
thumbs_115
(albums folder with thumbs_40 folder and thumbs_115 folder etc)

artists

album_extra
album_name
artist_name

formats

tags

Create a folder named "songs" in the root your Joomla! installation

Set permissions to 777 one each folder. This will allow you to copy the image into the folder through the browser.

I had all the folders in place before making the post and they are all Chmod 777.

What do you mean by "This will allow you to copy the image into the folder through the browser."

Cheers.

@boyo: just in case, try to use jpg instead of gif!!

Just created a "Test" album using a jpg. Same problem. Do you want me to provide any further details for you to have a look?

hmm, no, then the problem must be that you dont have GD lirbary installed on your php system.

try to use "static" mode instead of "dynamic", on MC parameters (backend), and let me know i the THUMBNAILS are showing.

GD library is the php library that allows dynamic image creation...

Aha!!!

Thanks a million :-)

http://www.amberwebservices.co.uk/music/index.php?option=com_muscol&view=album&Itemid=3

Still getting red boxes - any help please?

you should use Music Collection -> Artists instead of Music Collection -> album MENU ITEM TYPE in order to access the root of music collection in the frontend. change your menu item type