Help with Thumbnail wordpress script?

[kirbybowl]

A wordpress I have comes with the autoresize thumbnail script made by Tim. The php header has the following:

// TimThumb script created by Tim McDaniels and Darren Hoyt with tweaks by Ben Gillbanks
// timthumb - Google Code

The screenshot for the theme shows thumbnails, but the demo and my site doesn't display thumbnails. The images are suppose to be created in a cache folder, but they aren't. Anyone know how to fix this? Or possibly have another auto thumbnail tool?

Thanks

Edit I have looked at a tutorial on the setup from here, but no use! I have set my permissions to 0777 on hostgator for the /scripts folder and /scripts/cache folder but still nothing