php looping images from directory into jquery slimbox

I'm trying to use php to grab jpgs from a gallery directory, dynamically resize them and spit them out in a loop to be used with slimbox/lightbox. Everything seems to work great in IE but in Firefox it says there are 14 images (this number can vary) in the slideshow but I'm only testing with 3 images. When I go through the slideshow, it goes through all 3 images then repeats the last image until it hits the end of the phantom iterations. Very strange indeed. Any thoughts on what's wrong?

http://users.xplornet.com/~sabstock/gallery.php

gallery.php

<?php

// GRAB IMAGES FROM DIR, LOOP THEM WITH JQUERY TAGS
$path = "images/gallery/";
$dir_handle = @opendir($path) or die("Unable to open folder");

while (false !== ($file = readdir($dir_handle))) {

if($file == "thumbnail.php")
continue;
if($file == ".")
continue;
if($file == "..")
continue;

$caption = "Gallery Name";

echo '<li><a href="images/gallery/'.$file.'" rel="lightbox-2009" title="'.$caption.'"><img src="images/gallery/thumbnail.php?im='.$file.'" alt="'.$file.'" /></li>';

}
closedir($dir_handle);

?>

/////

thumbnail.php

<?php 
// Useage: thumbnail.php?im=image.jpg
// Optional: thumbnail.php?im=image.jpg&amp;maxsize=100

$im      = $_GET['im'];
$maxsize = $_GET['maxsize'];
            
if ($maxsize == '') {
	$maxsize = 100;
}

// The file
$filename = $im;

// Set a maximum height and width
$width  = $maxsize;
$height = $maxsize;

// Content type
header('Content-type: image/jpeg');

// Get new dimensions
list($width_orig, $height_orig) = getimagesize($filename);

if ($width && ($width_orig < $height_orig)) {
	$width = ($height / $height_orig) * $width_orig;
} else {
	$height = ($width / $width_orig) * $height_orig;
}

// Resample
$image_p = imagecreatetruecolor($width, $height);
$image   = imagecreatefromjpeg($filename);
imagecopyresampled($image_p, $image, 0, 0, 0, 0, $width, $height, $width_orig, $height_orig);

// Output
imagejpeg($image_p);
imagedestroy($image);
imageDestroy($image_p);

?>