Maybe this was posted before, than i'm sorry for writing this, but with the latest version of ImageMagick, the resize option no longer works, this options is now called by the function -size.
If you open Album.pl look for the following command:
$system_call.="-resize ";
if ($mode)
{
$system_call.="$pic_resize";
change this into :
$system_call.="-size ";
if ($mode)
{
$system_call.="$pic_resize";
This worked for me, now the Thumbnails are created without any problems.
Hope this helps anyone.