I have media gallery enabled in a fresh Drupal 7.7 installation that is set to use a private file system path and *private* as a default download method. When I create a media gallery and I add images, the images seem to be uploaded, but no thumbnails are displayed. If I try to "view the larger image" by clicking on the space in the thumbnail placeholder lightbox displays the images normally.
Looking into the private path, I see that the original images are uploaded and the folder styles/media_gallery_large/private is created and filled with the images that I have previously viewed via lightbox, but the styles/media_gallery_thumbnail/private is missing (i.e., no thumbnails are created) and I get the error message below (in the log):
Type access denied Location .../system/files/styles/media_gallery_thumbnail/private/1.jpg Referrer .../node/4 Message system/files/styles/media_gallery_thumbnail/private/1.jpg
Any help in solving this would be greatly appreciated!