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Originally Posted by Chuck S 2. try editing image-inc.php file and remove this from the mogrify line Code: Content visible to verified customers only.
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ding ding we have a winner!
Thanks! 
That worked, now it works with Imagemagick 6.4.5 I already had installed in that funky path 'C:\Program Files (x86)\ImageMagick-6.4.5-Q16'.
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Originally Posted by Chuck S 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 |
Thanks, yep my Photopost works with GD2 too

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Originally Posted by Chuck S 1. Make sure permissions on the data and uploads directories at every level are set to 777 permissions |
Thanks, yes after I got it working, I tried removing permissions, and if I removed change access for 'authenticated users' from the data directory I got the same error when uploading. Interestingly I was able to grant read&execute only access to 'authenticated users' the 'uploads' directory and it still works.
Now off to get some photos uploaded! Thanks again!