[Plugin: Video Thumbnails] Not Displaying Thumbnail

I have read over the Thumbnail issues and still I cannot figure out how to get my thumbs to appear, I continue to get full size images. I currently am current using:

<!-- This begins displaying posts and comments. -->
		       <div class="post_content">
				    <?php
			// The Query
			query_posts( 'posts_per_page=4' );

			// The Loop
			if ( have_posts() ) {
				the_post();
				?>
	            <div id="main">
	            	<h3><a href="<?php the_permalink(); ?>"><?php the_title(); ?></a></h3>
	                <?php the_content(); ?>
	                <small><?php the_time(); ?></small>
	            </div>
	            <div id="thumbnails">
				<?php
				// display a post
				while ( have_posts() ) {
					the_post();
					// Post content in short form inside the div below
					?>

	                <div>
						<h3><a href="<?php the_permalink(); ?>"><?php the_post_thumbnail(); ?></a></h3>
					</div>
					<?php

				};
			} else {
				?>
	            <p>Oops no posts!</p>
	            <?php
			}
			// Reset Query
			wp_reset_query();
		?>

I tried using the_excerpt() instead of the_post_thumbnail and it resulted in nothing being displayed. Is there some code im missing in my functions page perhaps? Any Help I could get would be awesome thank you!

http://wordpress.org/extend/plugins/video-thumbnails/