If your templates_c/debug.txt shows "Create Thumbnail - START" as last line when uploading a video, the problem is with ffmpeg-php not able to create thumbnail.
To verify, download following script, unzip and upload to your server.
http://www.buyscripts.in/vshare/vshare_test.zip
Now access the url
http://yourdomain.extn/vshare_test/thumb.php
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