jwesonga

Figured this out:

Create a functions.php file in the themes folder.
Add the following to the functions.php add_theme_support( 'post-thumbnails' );
And then modified my page.php template to have the following:

<?php
/*
Template name: Page
*/
?>
<?php get_header();?>
<?php if (have_posts()) : while (have_posts()) : the_post(); ?>

<div id="col1">
<?php if (has_post_thumbnail()){
	echo the_post_thumbnail();

}

?>			</div>
  <div id="col2">
<h1><?php the_title(); ?></h1>
                <p>
				<?php the_content();?>
				</p> 

		  </div>
<?php endwhile; endif; ?>

		  </div> 

<?php get_footer();?>

Sorry figured it out, I added the add_theme_support( 'post-thumbnails' ); to my functions.php file and it sorted it out

I just tried that function has_post_thumbnail and got this error:

Fatal error: Call to undefined function has_post_thumbnail() in C:\xampp\htdocs\wordpress-2.9.1\wordpress\wp-content\themes\mclabs\inner_page.php on line 11