I prefer "notepad" for a web building package.
For thumbnails, the real way to do it is take the image, and make it smaller in your favorite graphics editing program, and then have a link to the bigger one.
simple code:
<a href="your image" target="_blank"><img src="your image thumbnail" /></a>
However, if you dont want to go through this... then you could always do...
<a href="your image" target="_blank"><img src="your image" width=thumbnailwidth height=thumbnailheight/></a>
But that will make you site forever to load, as it will load each large image, and just display it as a smaller one.
Blaze