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I think that the problem Enquiry addresses is that one can create a thumbnail image from a movie into a bitmap or a jpg-image. The thumbnail image contains between 4x4 images up to 4x8 images depending on the settings. So it has nothing to do with displaying content as thumbnails in Vista, but rather creating that ONE image showing thumbnails from a movie.
A very nice feature if you are shooting movies and you want an easy way to keep track of the content in each movie...