Thanks for your response. It was a directory permissions issue. But there should still be some kind of error handling built into Soliloquy I would think that should indicate this rather than place an empty box placeholder where the image thumbnail would go and then not provide any feedback. The WP plug-in installer and Media uploader provides this.
Update: I found that I cannot upload any files into WordPress now so suspect some dir permissions have changed. I discovered this while trying to install a new slider plug-in. This upload procedure gave me a helpful error message though, Soliloquy didn’t say a word.