Very strange! It worked instantly for me as soon as I loaded that one file. Btw, I am testing all of this on a totally clean install of ZC that is still using the classic template. I uploaded a few additional products on top of the default ones and loaded rediculosly large images for IH2 to scale down.
[thinking out loud]
Are you sure that your main image is in fact larger than what you have IH2 set to scale down a large image too? I would guess that if your image is 400px and IH2 is set to only scale down to 500px then it would just do nothing and possibly just load the original from /images.
[/thinking out loud]
Daniel



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