regarding the thumbs, can you find which permissions the thumbs have or try to set permissions to the thumbs, or try to generate new ones again, as you can see i have no clue.
In general a classical blog is using posts categories for daily thoughts and you can browse through them by category or the archive, pages are more for the purposes of the classical website.
I dont know why theres no album shown dont see a trace of the expected code.
Regarding the different sizes: this is not easy as the resizing is globally set as an option as the columns are too.
And what i was talking about height is not about resizing pics but giving them a uniform container with a fixed height around them to bring order to the look. Problem is you have to take the highest pic as a measure, advantage you can get rid of columns as even only two are to much for 500 width.
This fixed height could be individualised a little bit more but only to the point of having it per gallery as this would have to be made possible by calling an altered copy of the gallery-gif.php.
To try this the first step would be to put a copy the file "nggallery.css" thats inside the "css" folder of ngg inside your themes folder (this to keep changes after updating ngg) and then alter it by looking for
and put a height eg
height:300px; inside the brackets.