I have the thumbnail size set for theme option:
crop: checked
width: 125; height: 150

The CSS is copied from style.css for Zenpage so that the formatting varies slightly for the thumbnails and the resized image pages (which I've not formatted yet).

The CSS is suppose to make the thumb look set on a mat with a border. Except, the images are not at the top of the rectangle. It looks as if the image is almost 1/2 way down vertically within the black rectangle.

img {
border: 3px groove darkgray;
padding: 9px;
/ border around sized image /
background-color: #F2F2F2;
/ white border around sized image /

}
I looked in my cache folder and the files show image.jpg_100_cw125_ch150.jpg. Cannot tell if this is the problem as I'm sure of the syntax for the thumb image.

The thumb size is needed for Zenphoto's image processor. If that value is 100 the cropwidth and -height values should be 100 or less. Otherwise the crop is "outside" the image.