I've upgraded from Geoportal version 1.1.1 to version 1.2. I'm using the dedicated metadata editor (FGDC Standard) to enter metadata records and in doing so I reference a .jpg file for the browse graphic. I can see the browse graphic when I open the "Details" view of the metadata; so I know Geoportal can find the .jpg I've created. But I'm not seeing the thumbnail version of the .jpg in the either the Search results; or the Browse tree. I've entered the path to the .jpg in the Indentification - Additional - Browse Graphic URL section of the editor. I've double-checked a number of files (browse-catalog.xml; metadata-definition.xml, gpt.properties, etc) but can't seem to find where (if any) the control is for the thumbnail display. The thumbnails were displaying fine in version 1.1.1.
perhaps you should check in the Geoportal Server Wiki on SourceForge. I think there's a bug on 1.2, thumbnails path must not contain spaces or other spacial characters, even if allowed in paths.