Duplicate the image by pressing SHIFT + D on the keyboard. (Never work on your original)
If the image is less than 16 Million colors, increase the colors to 16M. (Colors | Increase Color Depth | 16 Million Colors)
On the Menu Bar select Image | Resize
In the Pixel Size box, set the width or your thumbnail. You don't need to specify a Height as it will change automatically with the weidth size.
In the Resize Type box select Smart Size Method. (With the Smart Size method, Paint Shop Pro chooses the best algorithm based on the current image characteristics).
Make sure the Resize All Layers and Maintain Aspect Ratio check boxes are checked.