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
Content visible to verified customers only.
If all that is done try reinstalling Imagemagick in a short path directory like so
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