(I put my test dataset here: https://www.dropbox.com/s/w1dsw197eplwqdr/gpsphototest.7z)
When I run gpsPhoto.pl with options --kmz, it creates kmz and in its 'files' folder it puts not only thumbnails, but also full-size images with the same filenames (yes, it looks weird: duplicated files in the folder). Such kmz can be opened by Google Earth but images are not displayed. If I manually repack such kmz file, it starts to be displayed correctly.
I am on Windows 8.1 x64, ActiveState Perl v5.16.3 (but I remember the same behavior on Win7 and older version of Perl).