The thumbnailing method that ProofBuddy uses is incompatible with some ImageMagick versions in the 5.x series. I know that it doesn't work with 5.5.6 or prior.
The problem is that one of the hosts that many photographers use,
TLCWE, has this version on their servers. Thanks to Marty over at TLCWE I have a test account and have created a patch file that will allow you to use ProofBuddy on TLCWE. And not wanting to come across as a sales pitch, but I was amazed at how fast the server responded on the test account.
If your host is using an older version of ImageMagick and thumbnails aren't being created but the full sized images are, upload the attached file into your /admin/ folder replacing the copy that's already there.
Two catches.
1 - Sepia toning won't work. Sepia was introduced in either version 6.2.1 or 6.2.2 of ImageMagick. If you try to display a sepia image it will just show a blank image.
2 - The thumbnails will still contain the EXIF metadata. This is actually the command that was causing the problem. ProofBuddy is set to strip out any unnecessary data out of the thumbnails to keep the file size as small as possible. Not a major issue - we're only talking about the difference in a 5k file being a 10k file instead.