I wouldn't hazard a guess, but you ~should~ check some important basic things to help isolate:
-Check your "php.ini" file for
session.save_pathto make sure it refers to an valid folder path. Fore example:
-Also, turning notices back ~on~ in "php.ini" may -hint- at what's happening (even though Oliver is slowly enriching the code, there are still some typical harmless notices displayed that you can ignore):
-Try thumbnail creation from both possible methods:
1. during FTP takeover->Create thumbnail
2. During File Edit->Create thumbnail
-Try "different" graphics formats
For example, I think I read somewhere that PHP 4.3.7 might have a bug with imageCreateFromGif
We're interested to know what you find out
