Image / ImageField / ImageCache (automatic thumbnails) I'm getting pretty frustrated here:

I'm a complete newbie with Drupal, just installed some modules like CCK, and made a new Content Type for my website to display products (no webshop purpose, just displaying them).
It also has an image field, for the user to upload an image, but what I'm trying to do here is have a thumbnail somehow automatically created (to display in the overview).

It seems like such a simple thing which every CMS should be able to do easily (and I'm sure it's possible) but I just don't know how it's done.

After googling quite a while I found a lot of articles on the subject however they all seem to refer to modules such as ImageCache, ImageField, and after some research about the mentioned modules it seems to me they have somehow been merged into one module: Image in Drupal 7.7

This is driving me crazy, and I would very much like to hear a simple explanation on how to get to the desired result.
Here is a tutorial that will walk you through adding images.

http://www.youtube.com/watch?v=l0I5f9YmmI0