Sorry Chuck I found the GD/Imagemagick selection in the control panel. I am too tired to see straight.
I changed to Imagemagick and tried uploading. I got the following error:
Error creating thumbnail! Error code: 1
"/usr/bin/mogrify" +profile "*" -size 150x100 -quality 60 -geometry 150x100 -unsharp 10 '/home/carsales/public_html/photopost/data/500/thumbs/100_0905.JPG'
Can you advise please?