Usually if there are any extra files other than the jpg or ttf files it causes a problem with displaying the image.
RIGHT ON!!! So our captcha was broken, I fixed it then noticed the old and new forum both were randomly showing 3 maybe 4 characters and getting it to display 6 was near impossible!
I found a file called .listing in both backgrounds and fonts folders, deleting them fixed the limited number of char!
Thanks Ruben!