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The MediaContentSelectorView resizes the thumbnails that it shows, according to the Width and Height properties of the data item. I suspect that in this case, it shows the full image size and not the thumbnails, hence the overlapping.
Can you check that the Width and Height properties of your images are OK. Alternatively, you can edit the template for items of the MediaContentSelectorView, and render the thumbnail URL of images instead the full URL. One ends in .tmb, while the other ends in .sfimg
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The MediaContentSelectorView in Sitefinity shows thumbnails as squares. You can see what I mean in the designer of the Image control in the toolbox. The reason they don't show up in your case is a missing class, which has to be supplied to the MediaContentSelectorView. Here's the modified template, which should work fine:
If you don't want your thumbnails as squares, you have to include your own CSS styles and override the default ones by setting the appropriate width and height.