To create thumbnails:
Open the thumbnail template.psd file in photoshop.
Drag the resized image onto the file to create a new layer.
Hit command T to transform and while holding the shift key down pull downone of the corners to make the image smaller. Hit return when done.
Then hold down the option key to copy the layer style.
When ready save for web as the same file name, but add sm at the end before .jpg so you know it’s the thumbnail.