Thumbnails not showing // Remove extra space

1) We've been going through our old posts and adding featured images. However, I notice on our front page that they don't show up. The various posts on the blog just have titles, no images. Can you help fix this? 2) There is a lot of whitespace in our header. Is there a way to move the search box upwards so it is right under the Site Title/Tagline - I'd like it to fit within the same vertical space as the logo. Thank you! CB http://nagonline.net