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Not exactly what you need but why bother if there is free (and very nice) service available?
I'm using shrinktheweb.com - they provide semi-free (up to few thousands thumbnails monthly - but you can cache them) service with good API: xml output to check if thumbnails available or delayed + various thumbnails sizes + free of pesky watermarks. Not only I'm happy with the service on my own sites - but incorporated it into my commercial software.
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