Well I guess the ImageMagick issue is not related to the Category creation issue since I have solved the category creation issue by modifying the Storage Options as specified in:
http://www.photopost.com/forum/showt...54#post1182454 and
Access Issue to Data folder on Windows Server. But I guess I am getting closer to get this working as I want it. I just will have to bite the bullet and try installing GD
Gladys