Kindly refer the following link that will explain normal picture library to thubnail view .
https://www.nothingbutsharepoint.com/sites/eusp/Pages/how-to-create-a-thumbnail-picture-library-view-in-sharepoint-2007.aspx
the link is for sharepoint 2001 ..same can be applied for 2010
option 2; programmatically way
http://suryapulipati.blogspot.sg/2011/08/sharepoint-2010-display-thumbnail-view.html
option3 : instead of picture library ,use asset library.
Thanks
Mohamed Basith ,MCTS - MCP . Please remember to mark your question as "answered" if this solves your problem.