Ok, So it looks like I have fixed my previous issue. I had to change the line:
if(!empty($product->file_path)) $varFields['{pictHTML}'] = $image->display($product->file_path, false, $product->product_name);
to this:
if(!empty($product->file_path)) $varFields['{pictHTML}'] = $image->display($product->file_path, false, $product->product_name, '', '', $config->get('thumbnail_x', 100), $config->get('thumbnail_y', 100));
However I found another issue
So if product name has quotes like this: -> Dress "Vogue" <-
Image html is:
<img src="http://kyra.lt/media/com_hikashop/upload/thumbnail_405x270/dress_vogue_melyna_3.jpg" alt="Dress " vogue="" title="Dress ">
And Alt and Title is displayed wrong. I have no idea how to fix it....
Thanks