After having no luck with timthumb, and on the advice from this site I am going to edit my theme so it works using native wp functions. However I'm a little stuck.
I found this http://wpquestions.com/question/show/id/1098
Which appears to be a function which will resize images on the fly, but I'm not totally sure how to use it in my theme.
In addition to that, I know there is the normal thumbnails feature in WP - but how would I use that instead of timthumb which currently is just a url in my image source?