I had fun times trying to figure this one out. I got it to work though. Im using Fedora 3. Heres what I did
1. Install "totem-xine". This has the "totem-video-thumbnailer" package which nautilus uses to generate thumbnail images (these images are placed in the "~/.thumbnails" directory). You can do a "yum search totem-xine" from the command prompt then use yum to install it when it finds it.
2. Modify "gconf" by going to Applications->System Tools->Configuration Editor. Navigate to /desktop/gnome/thumbnailers. For each media type, I have the value "totem-video-thumbnailer %u %o" (changed from "gst-thumbnail %u %o").
3. Go to "~/.thumbnails/fail/" and delete all the files in that directory. (You can also delete the whole "~/.thumbnails" directory. Nautilus automatically generates this.
This is where I got the bulk of my information:
http://mail.gnome.org/archives/nauti...msg00067.html.
All credits to them for figuring it out