Ok that was weird. I checked the file in my CP Panel and it wrong. On Filezilla it was right. Changed it and I now have the gallery back. I did notice a warning as I did a test upload. Photo uploaded fine and seems to work but can you tell me what this error is for?
Warning: file_exists() [function.file-exists]: open_basedir restriction in effect. File(/usr/bin/jpegtran) is not within the allowed path(s): (/home/:/usr/lib/php:/usr/local/lib/php:/tmp) in /home/p16t2ugb/public_html/gallery/image-inc.php on line 754
In all options, Image processor is set to GD2
Configuration page still has this on last line.. /usr/bin/mogrify