To correct the thumbnail issue go to plugins/community/latestvideo.php at about line 80 change:
::" height="45" width="45" alt="title; ?>" src="images/thumb; ?>"/>
to
::" height="45" width="45" alt="title; ?>" src="thumb; ?>"/>
Did anyone figure out why thumbnails don't show? Of is there another module which will do the same thing and show the latest "Group" video as a module to be place on any page/location?