My tests with v.0.93 (currently available through the software center) do not exhibit this problem under 14.04 32-bit. I suggest downgrading to that version until such time as the problem with v.0.94 is resolved. I also found Openshot and kdenlive to be more reliable. Since I am unable to reproduce the problems that you are having, you should double-check that you have all the dependencies installed. Issue the following command:
sudo apt-get install gstreamer1.0-plugins-base gstreamer1.0-plugins-good gstreamer1.0-plugins-bad gstreamer1.0-alsa gstreamer1.0-pulseaudio 
libgstreamer-plugins-bad1.0-dev libgstreamer-plugins-base1.0-dev libgstreamer1.0-dev libgstreamer1.0-0
Thumbnails exist and playback works as expected.
Sources:
Experience
http://wiki.pitivi.org/wiki/Dependencies