1. Make sure permissions on the data and uploads directories at every level are set to 777 permissions
2. try editing image-inc.php file and remove this from the mogrify line
Code:
Content visible to verified customers only.
If all that is done try reinstalling Imagemagick in a short path directory like so
C:\imagemagick
4. You can also try using GD2 if its installed with your PHP as the image processor by setting the processor in global options to GD2 in admin panel