Image Watermark not working

I have been using NextGen gallery for a while now without issue. However, suddenly we’re experiencing an issue–the watermark will not apply itself to the image. I go to the gallery, select the images, select “Apply Watermark” in the bulk actions and hit update and I get an error message that says: Warning: imagecreatetruecolor() [function.imagecreatetruecolor]: Invalid image dimensions in /home/thesmart/public_html/wp-content/plugins/nextgen-gallery/products/photocrati_nextgen/modules/nextgen_data/class.ngglegacy_thumbnail.php on line 895

I have checked line 895 and my permissions (0755) for the gallery folders…nothing jumps out at me.

I also noticed that when I tried to remove and replace the watermark image (worth a shot) that, after hitting “Save” I’m redirected here:

http://smartemptynesttravel.com/wp-admin/admin.php?page=ngg_other_options

Which makes little sense as that page does exist.

Thoughts? Here’s my system information:

Operating System : Linux (64 Bit)
Server : Apache
Memory usage : 41.24 MByte
MYSQL Version : 5.5.37-cll
SQL Mode : Not set
PHP Version : 5.3.28
PHP Safe Mode : Off
PHP Allow URL fopen : On
PHP Memory Limit : 256
PHP Max Upload Size : 22M
PHP Max Post Size : 64M
PCRE Backtracking Limit : 1000000
PHP Max Script Execute Time : 60s
PHP Exif support : No
PHP IPTC support : Yes
PHP XML support : Yes
Graphic Library

GD Version : bundled (2.1.0 compatible)
FreeType Support : Yes
FreeType Linkage : with freetype
T1Lib Support : No
GIF Read Support : Yes
GIF Create Support : Yes
JPEG Support : Yes
PNG Support : Yes
WBMP Support : Yes
XPM Support : Yes
XBM Support : Yes
JIS-mapped Japanese Font Support : No

Thanks.

https://wordpress.org/plugins/nextgen-gallery/