Ok, I checked the directory AGAIN and it is as it should be according to the installation manual. I also looked at line 99 in the code it referred to. It looks as it should. This is what it says.
case 2: $src_img = ImageCreateFromJpeg($image_file_path); break;
Please help me. I will even PM you my ftp information so that you can see. I don't know what could be wrong.