Featured Image problem with resizing

I believe you need to pass the third $crop parameter to set_post_thumbnail_size. In other words…

set_post_thumbnail_size(80, 80, true); 

That third parameter enables a “hard-crop” mode. From the Codex:

Set the default Post Thumbnail size by cropping the image (either from
the sides, or from the top and bottom):

Without that argument, or with it set to false, you get a resize without distortion– ie. as close as possible to your dimensions. Also from the Codex:

Set the default Post Thumbnail size by resizing the image
proportionally (that is, without distorting it):

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