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I believe (not sure) that the imagegif() function relates to the image processor of your server (either GD1,2 or IM (ImageMagik) look in your photopost admin for 'Imaging Integration (IM or GD)' set to GD2, try an upload....
Some versions of GD do not support .gif files, but i think IM does, so try IM if installed on your server.
-T
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