I'm still trying to work out Blogo...so stay tuned!
As Mr. Home Maker mentioned in comment on last post the thumbnail of your photos wasn't showing up in my blog list either for awhile now, but this one did.What I've been doing to reduce resolution of photos for blog is open photo in editing app (I use Pixlr) even if it doesn't need real editing, I just open it and click 'done' then 'save image' then an option list of sizes (small, medium, max, custom) comes up. It defaults on max, so I always choose medium to decrease the memory size a bit. Not sure that is related to your issue, but thought I'd mention it for what it's worth.
I love when you comment on my blog but will not publish anonymous comments unless you reveal a name.