My gallery has been working fine for over a year. all of a sudden it wont let any one upload photos. i get the http 500 page webpage can not be displayed. the only change i made was update my php to version 5.2
500 error is generic server message basically your php is shutting down or there is an error and your php is not reporting the error. In Admin => PHPINFO do you have GD2 installed as part of php? If you do are you using GD2? If your server has it great. If not then this is your issue since your using GD2 and your server does not have it anymore. Now if you do have GD2 make sure in Admin => Global Options make sure you set your processor to GD2. 9 times out of 10 these issues are server related especially if you tell me you just updated your server and you have issues.
Lets start here after you check and see which processor you have. FTP to your server and go to your photopost directory. Go to uploads under photopost directory and delete all directories there to unclog your uploads folder.