[saline]

Here's a question, and keep in mind I know close to nothing about php, but.

There's this little dealy:

$srcimage = imagecreatefromjpeg($QUERY_STRING);

Now I don't know imagecreatefromjpeg from a hole in the wall, is that built in or did you write it? Either way, what file extention does it use for the final image .jpeg or .jpg ?

because later, when displaying the images, you look only for .jpg

in the thumbs.php here:

 if($file != '.' && $file != '..' && stristr($file,"jpg"))

Perhaps it's not finding the right pictures because you're looking for the wrong extention (.jpg instead of .jpeg)?

In the same vein when you have an error it seems like you're creating a .gif and then again looking for .jpg?

But then again I could be way off, good luck!