Here How to add recent posts with thumbnails..
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comments
Source from Kanthi
1. Go to (Layout->Page Elements->Add A Gadgets->HTML) and paste the below codes..
Change http://yourblog.blogspot.com/ to your blog url...
Other thing,you can costumize according to your blog..
<script language="JavaScript">
imgr = new Array();
imgr[0] = "http://i43.tinypic.com/orpg0m.jpg";
imgr[1] = "http://i43.tinypic.com/orpg0m.jpg";
imgr[2] = "http://i43.tinypic.com/orpg0m.jpg";
imgr[3] = "http://i43.tinypic.com/orpg0m.jpg";
imgr[4] = "http://i43.tinypic.com/orpg0m.jpg";
showRandomImg = true;
boxwidth = 298;
cellspacing = 8;
borderColor = "#ffffff";
bgTD = "#000000";
thumbwidth = 40;
thumbheight = 40;
fntsize = 12;
acolor = "#666";
aBold = true;
icon = " ";
text = "comments";
showPostDate = false;
summaryPost = 40;
summaryFontsize = 10;
summaryColor = "#666";
icon2 = " ";
numposts = 5;
home_page = "http://yourblog.blogspot.com/";
</script>
<script src="http://malaysiaforunity.comxa.com/misc/recentposts_thumbnail.js" type="text/javascript"></script>