I'm happy to finally see this plugin live, however it doesn't seem to work properly for me. One of my self-hosted blogs is a photo blog, just 1 or a few pictures per post and some subtitles.
On the iPad the splash image looks fine when i'm starting from home screen. The cover icon and the title is OK, but instead of a cover image just a strange blue stripe comes in and out of the screen on the left hand side.
And then on the post pages (the magazine layout, not the individual posts) no thumbnails or images showing only title headers and the text parts of the posts.
On one of my test installations I had to create the thumbs-cache folder manually, on another one it's been created automatically, I set permissions to 777 but still no thumbs.
Any thoughts, similar issues?