[Inferno Dragon]

^ Nope that's not the correct option, these options are for changing the layout of the media library like with "tiny bit" no addition infomation like category, uploader etc will be diplayed below thumbnail and vice versa.

I am talking about actually physically decreaseing the generated thumbnail size like that site has done which I posted in the example

Edit: I found the problem, when I changed the image settings in the vbulletin settings from imagemagick (I was using it) to GD it fixed the problem and now thumbs are working fine, I also notice that in the code author has disabled the imagemagick library..IMO isn't imagemagick generate more sharper thumbs?