Need help with batch renaming (Automator preferably)

[Palli]

Hey all.
I have about 300 folders each with 10 pictures in them.
I want all of those 10 pictures to be renamed to 1,2,3,4 etc.
So I use the sequence rename option in Automator but the numbers continue throughout all the folders.

Actual result:
/moo/1.jpg
/moo/2.jpg
/hmm/3.jpg

Wanted result:
/moo/1.jpg
/moo/2.jpg
/hmm/1.jpg

I'm sure there's an easy solution and this is very important for me, so please help me

Edit:
Also, I'd like to know if I can make it create a smaller mini.jpg from 1.jpg in every folder?

Thanks a lot,
Palli