Sorted that.The folder in the upload folder wasnt 777
Now instead I get :
Error creating thumbnail! Error code: 127
Command:
"/usr/bin/X11/mogrify" +profile "*" -size 100x75 -quality 70 -geometry 100x75 -unsharp 10 '/aasasdd/local/home/dsdsdsd/mydomain.com/gallery/data/500/thumbs/l1235.JPG'