Fresh cs-cart 4.01 Install: Images not displaying?

Hi I've installed on cscart 4.01 and followed directions as per the installation file indicates

everythings goes smooth except

thumnbnails are not loading:

renaming .htaccess files does not change this behavior (suggested as a possible solution in CS-Cart Documentation — CS-Cart 4.15.x documentation )

any ideas?

And you sure you have all the folder permissions correct? chmod -R 777 images