Why is it I always get an error message saying there is a problem with the image I upload? I have had the same problem on both WinXP and Linux so I don't think it is the OS but all the images display well enough once they are uploaded.
There is a problem with the image processing software whereby it crashes when it has completed generating the thumbnail etc. We are currently investigating other programs to use to perform this function within PHP, and we have no idea why it's become so bad lately (it used to be once in a blue moon).
As you've noticed though, the images are successfully uploaded without a problem.