It might be the +profile "*" part of the line, search for it in image-inc.php and remove it, or try for GD2, this means you may need to go for an updated version of IM.
I removed the +profile"+" but still get the same error. I upgraded imagemagick. Still no luck..I would rather not change to GD2 considering it was working with imagemagick....any more ideas?
Thanks
Bap