Joshua Eichorn has a new update on his Webthumb application he's mentioned before, noting some of the issues/updates that he's worked through so far.
Webthumb got off the ground yesterday without too many problems. It ran into problems right out of the gate since a large number of sites don't seem to want to finish loading correctly. I also updated the server config, Webthumb now supports flash (version 7), and has a lot more fonts installed so sites that need non-latin characters should be working correctly.
He's also laid out some "feature goals" that he'd like ot add in eventually, including better URLs, a searching method for thumbnails, and user accounts.