thumbnail problem

Hi i have a problem with my pictures, my thumbnails http://www.in2town.co.uk/Katie-Price

the link above shows an article called Katie Price Pays Peter Andre Libel Damages and as you can see most of the head is missing. i have this on most of the site and i am not sure why and how to solve this. i know i must have the settings wrong somewhere, can someone please put me out of my misery and let me know what i am doing wrong.

many thanks