Here’s a quick snippet of code you can throw into your functions.php file that will your theme automatically set it to the first available image. Note, you can always go and set another image as the featured image if you want to. It checks to see if a featured image exists and if it doesn’t, picks the first one. Snippet from http://wpforce.com/a…

auto-featured-image-wordpress.php

function autoset_featured() {
          global $post;
          $already_has_thumb = has_post_thumbnail($post->ID);
              if (!$already_has_thumb)  {
              $attached_image = get_children( "post_parent=$post->ID&post_type=attachment&post_mime_type=image&numberposts=1" );
                          if ($attached_image) {
                                foreach ($attached_image as $attachment_id => $attachment) {
                                set_post_thumbnail($post->ID, $attachment_id);
                                }
                           } else {
                                set_post_thumbnail($post->ID, '414');
                           }
                        }
      }  //end function
add_action('the_post', 'autoset_featured');
add_action('save_post', 'autoset_featured');
add_action('draft_to_publish', 'autoset_featured');
add_action('new_to_publish', 'autoset_featured');
add_action('pending_to_publish', 'autoset_featured');
add_action('future_to_publish', 'autoset_featured');