You said up near the top of this thread:
Is there any way to get the full picture in the are area or is this the way this program handles viewing photos in the timeline?
Now you say in addition:
it reduced the size of the timeline but I'm still getting the repeating of the thumbnail
I am beginning to wonder if you would be more comfortable in Storyboard view -- which uses just one static image for a whole clip (and surrounded by black!!) -- rather than the repeated thumbnails in the Timeline view you are in. (They are not supposed to be repeated thumbnails but representations of individual frames within the video. You can in fact stretch out the timeline so that it shows each and every individual frame in the video.) If you want to use Storyboard View, have a look at my attached image and click on the icon indicated by the red arrow. (The icon to its right will return you to Timeline View.)