I have found my problem was totally resolved when I changed my php to 5 and upgraded wordpress and nextGen afterwards. Hope it helps you.
I have the same problem and am desperate for help as I am a complete novice on all of this.
I upgraded to 1.4.3 NextGen and it has changed my galleries and no thumbnails are registering.
I have the same problem as you Kimmer01 – fingers crossed someone can help.
http://www.leelabphotography.co.uk
Operating System : Linux (32 Bit)
Server : Apache
Memory usage : 12.84 MByte
MYSQL Version : 5.0.81-log
SQL Mode : Not set
PHP Version : 4.4.9
PHP Safe Mode : Off
PHP Allow URL fopen : On
PHP Memory Limit : 40M
PHP Max Upload Size : 20M
PHP Max Post Size : 8M
PHP Output Buffer Size : N/A
PHP Max Script Execute Time : 50000s
PHP Exif support : Yes ( V1.4 )
PHP IPTC support : Yes
PHP XML support : Yes