Featured Post Widget

Hi!

My theme uses the featured post widgets however, I cannot get the widget to work, in that it is not using a thumbnail for my “Latest Posts” Segment or any other segment that I have tried creating. I am not sure what I am doing wrong. It is showing the entire picture and this is looking very strange.

What do I need to do to fix this?

My website is on,

http://www.cookinginwestchester.com