Right, I have gone crazy and upped the php.ini to: memory_limit = 48M, and that seems to have fixed GD2 now, fingers crossed. Many thanks.
Seems I will have to stick with GD2, could never get ImageMagick to work, it did not write the images into the gallery directories for some reason. I could get it to work from the terminal and the paths were definitely correct, does it need any permission changes or anything? All gallery directories were set to cmod 777.
