TimThumb Thumbnail not displayed

Hi All,
I have a custom theme for my upcoming gallery website http://www.footerama.com.

I have currently one post up as an example of the problem I’m having. Until I can get it resolved I can let the entire database go live.

On the homepage, the resized images are created using a Post-Resize function from here – http://snipplr.com/view/14280/get-wordpress-image-attachment-and-use-tim-thumb-to-crop/

So I don’t need to use custom fields to crop my image. Additionally I am scaling the image to a width of 900px using 2.9 image scaling functionality.

The image URL I set is of the website from where I feature the gallery item. So it is not the path of the image file. (User should be able to click on the image and go to a different website)

This setup works perfectly on my local machine with WAMP.

On the live server though, I don’t see any thumbnail on the homepage. When I right click and go to the thumbnail, I get a 404 error.

Where could I have gone wrong? I have tried 777-chmoding all folders, changing file names to not contain special characters. But it hasn’t helped.

What else could I do to achieve my desired results?
Thanks,
-Tejas