Hi numb
ad 1) You have to select the thumbnail module in ACP>settings>
Conversion tool for thumbnailswithout setting this module, you won't be able to create thumbs automaticaly no matter if "auto thumbnail" is set to on or off
ad 2) If you go to ACP>Templates, choose a template and click "load theme" 4images only loads the chosen template to be edited in the web-interface.
You may now choose a single template-file and edit it after cllkicking on "Edite templates".
But if you want to SET your template to be shown on the gallery, then you have to set it in the seting
ACP>Settings>
Choose template directory Have fun