The images still don’t work after giving permissions, what should I do?

Are you hosted with hostgator? If you are hosted with HostGator then you will need to contact them in order to get thumbnails to work.

By default, they have mod_security settings enabled that do not allow the script to function. Also, HostGator does not allow 777 permissions. Instead, you should CHMOD your cache folder to 755. Also make sure that thumb.php is set to 644. I have many users hosted with HostGator that have their stores working fine, it is just a matter of getting someone to help you that knows what they are talking about (if you do, your store will be working in no time).