Oh here is what I did to make it work.
Step 1. Grab the original phpthumb from source forge
http://sourceforge.net/projects/phpthumb/files/phpThumb()/
Step 2. Rename containing folder to phpThumb and copy to assets/components
Step 3. Then I had to edit 3 lines in Jared’s snippet.
Edit this to point to the new phpThumb Library
Line 73: $phpthumb_path = 'assets/components/phpThumb';
Edit these next two lines to keep the library "untainted" this way you can upgrade the library without having to remember to rename files.
Line 149: $output = $base . $phpthumb_path . '/phpThumb.php?' . $src . '&hash=' . md5($src.$_SESSION['high_security_password']);
Line 151: $output = $base . $phpthumb_path . '/phpThumb.php?' . $src ;
I’ll let Jared do a proper repackage and this post should be redundant