If you look for this
PHP Code:
if ( $height > $width )
$mthumb = "<img src=\"{$url_path}/images/overlay-roundp.gif\" height=\"105\" width=\"81\" border=\"0\" alt=\"\" />";
else
$mthumb = "<img src=\"{$url_path}/images/overlay-round.gif\" height=\"81\" width=\"105\" border=\"0\" alt=\"\" />";
In inc-features and change the overlay round to whatever you want that should do it, or leave it blank if you dont want one..