I was messing around with the problem of the thumbnails not showing up when I found the problem.
Seems the "customize this page" has an issue with only keeping up with modules that are installed when you "customize this page".
The CURE
1) From the Home page, once again, click "Customize this page".
2) Drag "Search" to the center column"
3) You will get an error message saying something about inactive modules "are now displayed at the bottom".
4) Go to the bottom and drag both "Popular Tags" and "Random Pics" to where you want them to be displayed.
5) Put the search box back (or whereever you want it)
6) Click to EXIT the configuration
All should now be well with the universe.