So you may have noticed toward the end of my demo that the image gallery did not display images as it should, and I moved on to questions for the sake of time.
The thumbnail images were not being generated by the ImageCache module because I had a blonde moment and forgot to check the GD2 image library support under ImageCache on the /admin/build/modules page. See, ImageCache needs a library in order to work its magic. :) So that's all that was.
You see it working at: http://porky.linuxjournal.com/drupal2/gallery
Thanks everyone for bearing with me while I was having some technical difficulties. :)