here is how I got my pics to show up in winxp sp3 . Not sure why they stopped as I used to be able to see thumbnails before reloading winxp. .
Connect phone . Drag down task bar from top of phone and select Camera . Now go to win explorer and to your phone . Go to folder DCIM . This is your pics . Select all and copy to where ever you wish . I use Documents / photos from phone . Now all your thumbnails will be showing instead of that stock icon .
You can always delete the old photos from your phone or simply copy all again when you want new photos on your pc . Also Samsung Kies will do the trick if you want that huge bloated POS on your system . there is also an app that does it but I forgot the name of it . I find it easier to jsut copy them over .