gallery plugin not making thumbnails

i am working with the WP folio theme, and have added both gallery & lightbox plugin, but when i load my pix in the gallery, it doesn’t convert them to thumbnail; they show up as exact size on the site.

and in the individual image add/show page, i can’t change to thumbnail. it keeps defaulting to medium.

i want to be able to have 10 thumbnails, but when user clicks on them to open to the large view mode.