Can anyone with Word Press knowledge please tell me whats wrong!

I have a worpress 3.0 News site and for the life of me, I cant get excerpts thumbnails to work on the home page. If you click the post the thumbnail is correct but the excerpt uses my default image. I have used this theme and others in the past without issues. I also use wp-o-matic for the auto blogging.
Other themes I used thumbnails for excerpts on but this one doesn?t need it says the creator..
The site is goldencrestnews.com and the theme is breaking news.
Here is the index.php
<?php get_header(); ?>
<div id="pbody">
<?php include(TEMPLATEPATH."/sidebar.php");?>
<div id="content">
<?php if (have_posts()) : ?>
<?php while (have_posts()) : the_post(); ?>
<div <?php post_class() ?> id="post-<?php the_ID(); ?>">
<div class="ptitle"><h2 class="title">
<a href="<?php the_permalink() ?>" rel="bookmark" title="Permanent Link to <?php the_title_attribute(); ?>"><?php the_title(); ?></a></h2></div>
<div class="entry">
<?php if( get_post_meta($post->ID, "thumbnail", true) ): ?>
<a href="<?php the_permalink() ?>" rel="bookmark"><<img style="float:left;margin:15px 10px 0px 0px;"
src="<?php echo get_post_meta($post->ID, "thumbnail", true); ?>" alt="<?php the_title(); ?>" /></a>
<?php else: ?>
<a href="<?php the_permalink() ?>" rel="bookmark"><img style="float:left;margin:15px 10px 0px 0px;" src="<?php bloginfo('template_url'); ?>/images/thumbnail.png" alt="<?php the_title(); ?>" /></a>
<?php endif; ?>
<?php the_content_limit(500, "[Read more...]"); ?>

</div>
<p class="postmetadata">Posted in <?php the_category(', ') ?> | <?php edit_post_link('Edit', '', ' | '); ?> <?php comments_popup_link('No Comments »', '1 Comment »', '% Comments »'); ?></p>
</div>
<?php endwhile; ?>
<div class="navigation">

<?php if(function_exists('wp_pagenavi')) { wp_pagenavi(); }
else { ?>

<div class="alignleft"><?php next_posts_link('« Older Entries') ?></div>
<div class="alignright"><?php previous_posts_link('Newer Entries »') ?></div>
<?php } ?>

</div>
<?php else : ?>
<?php include(TEMPLATEPATH."/404.php");?>
<?php endif; ?>
</div>
<?php include(TEMPLATEPATH."/sidebar2.php");?>
</div>
<?php get_footer(); ?>


Maybe it?s something new with 3.0 or something.
Any input will be appreciated!
Thanks

P.S. it was 2.9 and I updated to see if that would fix the issue.

maybe the excerpt plug in is not compatible with either. go to wordpress.org and look up the plugin and see its latest compatibility and when it was last updated.

Thanks for the reply. I'm not using a plugin for the excerpt. The theme was developed to do this without a plugin.
Here is the only code I could find that was in the index.php file

<a href="<?php the_permalink() ?>" rel="bookmark"><<img style="float:left;margin:15px 10px 0px 0px;"
src="<?php echo get_post_meta($post->ID, "thumbnail", true); ?>" alt="<?php the_title(); ?>" /></a>
<?php else: ?>
<a href="<?php the_permalink() ?>" rel="bookmark"><img style="float:left;margin:15px 10px 0px 0px;" src="<?php bloginfo('template_url'); ?>/images/thumbnail.png" alt="<?php the_title(); ?>" /></a>
<?php endif; ?>

Forgive me, I'm just a PHP hack, not a code guy so let me know when if I'm way off base..

well i think that you should use this

instead of this
wherever is the case

thanks. Did what you suggested but still no luck..

Since I'm in the middle of creating my own wp3 theme, I think I can help you with that.

1.- Make sure you include this code into your theme's function.php:


2.- Then whenever you need to call the thumbnail just use:


Hope that helps dude!

Used different theme and all is working now