Its good you are at your own hosting. Things are easier to debug.
Seems like you have error output suppressed. Try adding following code after the first line in the webthumb.php. It will enable errors output to the browser.
ini_set('display_errors','1');
ini_set('error_reporting',E_ALL);
Make sure you also removed all
@ signs from the file. This sign also suppresses error output.
Then try running web site thumnbnail creator again. Any new errors shown?
Check the folder you set as thumbnails folder (
$thumbnails_folder setting). Does it contain any images?
Also post here parameters you are passing to the script. Maybe I'll be able to find something out from it.