Geoff, I think you got it, here is a discription of their nesting habits which I can see resembles the picture David took:
Nesting.--The nest of the hermit thrush is a compact structure but often bulky in the amount of nesting materials used. The foundation and exterior of a typical nest are composed of twigs, strips of wood, bark fibers, dried grass, and ferns and ornamented on the outside by bits of green moss. The lining is made up of pine needles, delicate plant fibers, or fine rootlets. The interior dimensions of the nesting bowl are about 2 3/4 inches across by 2 inches deep.
The nest is generally built on the ground and in a natural depression of a knoll or hummock, often under a small fir or hemlock whose branches touch the ground, forming a kind of protective canopy over the nest. One nest found in northern Michigan was in a rather open space of woodland and was completely surrounded by blossoming bunchberries, and another nest was completely hidden from view by a luxuriant growth of ferns.
Eggs: 3-4, oval or long oval. Pale blue, typically unmarked with a slight gloss.