I wanted to insert a permament link with a thumbnail pointed to a larger picture. Below is what I got instead of a thumbnail:

<a href="http://www.serveo.com/viewer/OpenImage.aspx?ServerImageID=bb35c746-e7cd-42a1-ac79-282a45f6f989" target=_blank><img src="http://www.serveo.com//Thumbs/bb3/5c7/bb35c746-e7cd-42a1-ac79-282a45f6f989.jpg" border=0 style="padding: 5px;"></a>

I think I need to click on HTML tab (at the bottom of the Editor) so it can actually insert the link with the picture thumbnail - like that:

 

I'm posting this so other people know too - click on HTML tab (instead of Design tab) before you copy your permanent link into your journal! Hope that helps!