This is the Solution for SharePoint 2010. This version includes the image uploader field control which creates a file uploader column for images.
To use this functionality do the following:
1. Create 2 columns on the appropriate announcements list - These columns should be of type "Image Uploader" and should be called "Main Image" and "Thumb Image".
2. The 1st image uploader column ("Main Image") should have a width set to 270px
3. The 2nd image uploader column ("Thumb Image") should have a width set to 50px
4. Remember to disable attachments for this list.
Then add the webpart to the page and edit the properties of the webpart (toolpane)
1. Set "News Image URL Column" to "Main Image"
2. Set "News Thumb Image URL Column" to "Thumb Image"