Yeah in the same folder with your Loader.swf there is a Settings.txt where you can tweak some parameter.
Can you please post your CharCode ?
Yes yes.
For exemple this is the code I'm using for my thumbnails:
[CODE]charName:RM MIGRATION;arms:back,back;
hisFootwear:none,0,0,0,1;
collar:none,0,0,0,1,0,0,0,1;cuffs:none,0,0,0,1,0,0,0,1;
customBG:Mods\Blank.jpg[/CODE]
Blank.jpg is just a white background located directly in my Mods folder. (It might be a bit messy to throw some stuff directly in this folder but, in this case, this is just a seperate Loader folder for my thumbnails.)