Main album thumbnail not updating

[ladybird]

My album's thumbnail will not update when I try to update all the thumbnails with the admin tools. They are pixelly and blurred. The thumbnails within the albums will update but not the main album's thumbnail.

http://mrs.caelenbird.com/gal

[Joachim Müller]

They are pixelly and blurred.

This is expected behaviour - happens when you set the album thumbnail dimensions (Config -> Album list view -> Size of thumbnails in pixels) to be larger than the "real" thumbnail resolution (Config -> Files and thumbnails settings -> Max dimension of a thumbnail). You appear to have set album thumbnail size to 200, while the actual thumbnails are only 100 pixels wide. Subsequently, the browser stretches the images when rendering them.
It's advisable to set the album thumbnail size smaller or equal to the actual thumbnail size.