I removed all the imgaes and photos from the device and followed the above step....and issue of Thimbnailerd has been resolved.

However, my contact imgaes are all messed up...any idea how to correct those???? I have removed all files in following folders:

/home/user/.osso-abook/avatars/
and
/home/user/.osso-abook/photos/

But it did not help, Any ideas bro....???????