Post Image Plugin – Loading Thumbnails

Hello WordPress community!

I have a problem with Post Image plugin.

I managed to get it working almost as I would like it to, except for the thumbnails not being displayed. The post date, title and its excerpt are being shown correctly though.

Here’s the code for what it’s worth:

<?php
$thumbs = new WP_Query("cat=5&showposts=2");
while($thumbs->have_posts()) : $thumbs->the_post(); ?>
<div id="feat_wrapper">
<div id="feat_pic">
<a href="<?php the_permalink(); ?>"><img src="<?php post_image('http://mywebsite.com/myimage.jpg', true, false); ?>" alt="<?php the_title(); ?>" width="97" height="72" border="0"/></a>
</div>
<div id="feat_txt">
<?php the_time('d|m'); ?>
<a href="<?php the_permalink(); ?>" rel="bookmark"><?php the_title(); ?><br /><?php the_excerpt(); ?></a>
</div>
</div>
<?php endwhile; ?>

I put this code on a page that shows the featured posts from a category. Here’s an example.

I want to understand how exactly this plugin works. I uploaded/inserted pictures in all posts and nothing happened. Not even the default image is being displayed. I’ve read the author’s page so many times and also have searched the whole WordPress forum, but I still haven’t gotten a definite answer, only similar unanswered questions.

Please, some master of the PHP language, help!

Thank you.