I dont fully understand the problem so ignore this if it isnt relevent!

But..

An oscommerce install i have auto thumbnails all of my images and if i want i can set a parameter to convert gifs to jpegs on all my images. I dont fully understand how this is done as i didnt write this particular script. However having a quick look through the php files it makes reference to 'GD Library' all over the place so i guess it is using it!?

That being said i dont have any special access on that account and it all works without a hitch, Magic!

Sorry i couldnt be more helpful than that!