the images are in the same directory where the file is ...
I put the code after a div block of some posts
the following code comes before the new code :
<div class="item-content">
<header>
<h2 class="entry-title"><a href="<?php the_permalink(); ?>" title="<?php printf( esc_attr__( 'Permalink to %s', 'noteworthy' ), the_title_attribute( 'echo=0' ) ); ?>" rel="bookmark"><?php if(the_title( '', '', false ) !='') the_title(); else _e( 'View Post', 'noteworthy' ); ?></a></h2>
</header>
</div>
<?php
if ( has_post_thumbnail()) : ?>
<a href="<?php the_permalink() ?>" rel="bookmark" title="<?php the_title_attribute(); ?>"><?php echo the_post_thumbnail( array( 250, 250) ); ?></a>
<?php else : ?>
<?php $postimgs =& get_children( array( 'post_parent' => $post->ID, 'post_type' => 'attachment', 'post_mime_type' => 'image', 'orderby' => 'menu_order', 'order' => 'ASC' ) );
if ( !empty($postimgs) ) :
$firstimg = array_shift( $postimgs );
$my_image = wp_get_attachment_image( $firstimg->ID, array( 250, 250 ) );
?>
<a href="<?php the_permalink() ?>" rel="bookmark" title="<?php the_title_attribute(); ?>"><?php echo $my_image; ?></a>
<?php endif; ?>
<?php endif; ?>
</div>
<?php
/* end of your output here*/
endwhile;
endif;
wp_reset_postdata(); ?>
</div>
<div class="cleaner_h10 "> </div>