Display Related Posts with Featured Image

related-posts.php

<div class="related-posts-wrap">
	<h4><?php _e('Related Posts','freshshop') ?></h4>

<?php // http://goo.gl/xhYct

	// Find related posts based on similar tags
	$tags = wp_get_post_tags($post->ID);
	if ($tags) {
	$tag_ids = array();
	foreach($tags as $individual_tag) $tag_ids[] = $individual_tag->term_id;

	$args=array(
		'tag__in' => $tag_ids,
		'post__not_in' => array($post->ID),
		'showposts'=>4,  // Number of related posts that will be shown.
		'caller_get_posts'=>1
	);

	$my_query = new wp_query($args);
	if( $my_query->have_posts() ) {
		echo '<div id="related-post" class="clearfix"><ul>';
	while ($my_query->have_posts()) {
	$my_query->the_post();

	/* Featured Image */
	if (has_post_thumbnail()) { /* if the post has a featured image */ 
	$blog_image_url = wp_get_attachment_image_src( get_post_thumbnail_id(), ''); // Get original image size
	$thumb = get_post_thumbnail_id(); 
	$image = vt_resize( $thumb,'' , 120, 120, true ); // Resize original image
?>
				<li>
					<a href="<?php the_permalink() ?>" rel="bookmark" title="<?php the_title_attribute(); ?>">
						<img src="<?php echo $image[url]; ?>" width="<?php echo $image[width]; ?>" height="<?php echo $image[height]; ?>" alt="" />
					</a>
				</li>
				  
				<?php } elseif (!has_post_thumbnail()) { // if there is no thumbnail, give it a temporary image ?>
				
				<li>
					<a href="<?php the_permalink() ?>" rel="bookmark" title="<?php the_title_attribute(); ?>">
						<img src="<?php bloginfo('template_directory'); ?>/images/no-image-114x114.jpg" alt="" />
					</a>
				</li>
				
				<?php } ?>
			
<?php
}
echo '</ul></div>';
}
}
$post = $backup;
wp_reset_query();
?>

</div> <!-- end .related-posts-wrap -->

style.css

.clearfix:before,
.clearfix:after {content: '\0020';display: block;overflow: hidden;visibility: hidden;width: 0; height: 0;}
#related-post ul {list-style:none;}  
#related-post ul li{float:left;margin-left:0;margin-right:20px;}  
#related-post img {border:1px solid #cccccc;background:#F9F9F9;padding:2px;}  
#related-post img:hover {opacity:0.8;border:1px solid #999999;}