Due to the different thumb URL scheme for dynamic albums, the old show_latest_albums function found in a few themes customfunctions.php breaks.
I was able to fix it with something like this:
if ($dyn=="1") {
echo '';
The rest is left as an exercise to the reader
Well, it seems that for non dynamic albums, the thumbs column is filled with a relative URL for the thumb, relative to the album itself. Whereas for Dynamic albums (which I love, thanks sbillard), it's a longer URL that includes the non virtual album which the thumbnail is taken from ?
I'll look into the function in the core, probably didn't exist when I started writing the first version of my theme.