You have posted in the wrong forum. You are using photopost pro not vbgallery.
However the advise is generally sound although geared towards vbgallery which might be a little confusing.
Your issue can only be one of two things I would think.
1. Your imagemagick install is hammered meaning not working
2. Your permissions are wrong on the directory as your data directory in photopost pro per the install instructions state you must set that directory to 777 permissions at every level.
Now in global options in admin panel of photopost pro you can set your processor to GD2 and try to upload. If you upload fine then the issue is with imagemagick. If you cant upload then either permissions are wrong on the data directory or maybe safe mode is on.