I just created a new install which appear to go just fine.
Hosted on godaddy/linux install

The issue I have is that when the page is first opened the cache gets permissions of 640 instead of 644. If I change them the thumbnail will appear. Which os ok for the initial page thumbnails, however to open each image to get it cached and then change the permissions would be a little tedious.

I assume I have something set wrong, however haven't stumbled across anything yet. I checked with godaddy support who informed me that linux hosted does not inherit permissions.

Any help would be appreciated.

Zenphoto version 1.4.2-RC1 [8674] (Official Build)
Current locale setting: enUS.UTF8
Current gallery theme: Default
PHP version: 5.2.14
Graphics support: PHP GD library bundled (2.0.34 compatible)
PHP memory limit: 96M (Note: Your server might allocate less!)
MySql version: 5.0.91
Database name: uglybutt
Table prefix: zenphoto
Spam filter: none
CAPTCHA generator: zenphoto

If you have selected strict+ permissions in setup you will need to change that to just strict.

Thank you, took me a minute to figure to reload setup, however yes it was set to strict plus. Works great now.