Update: The issue has been fixed by Google.
Starting yesterday, our Picasa Mobile app has started having all kinds of issues when showing web photo thumbnails.
We released an emergency fix last night to correct this issue. If you are affected, please upgrade to the latest version, Picasa Mobile 1.0.8.
Google has acknowledged the problem and they are working on a fix.
We apologize for any inconvenience this may have caused you. Sometimes, even the big guys (read Google) make mistakes.
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