[Plugin: NextGEN Gallery] Error Creating Thumbnails

When uploading any image I receive an error when it creates the thumbnails. I also receive the error when attempting to do the Batch Process in gallery manager.

The error is: “ID 28: A Failure Occurred”
(The ID number seems to be the image index in the library)

Manually creating individual thumbnails using “Edit Thumbnail” wihtin the gallery manager works just fine. But the automated one fails and has failed even with the previous version.

Any help would be greatly appreciated.

Server Settings
Operating System : Linux (32 Bit)
Server : Apache
Memory usage : 16.47 MByte
MYSQL Version : 5.0.92-log
SQL Mode : Not set
PHP Version : 5.2.17
PHP Safe Mode : Off
PHP Allow URL fopen : On
PHP Memory Limit : 64
PHP Max Upload Size : 8M
PHP Max Post Size : 8M
PCRE Backtracking Limit : 500000
PHP Max Script Execute Time : 30s
PHP Exif support : Yes ( V1.4 )
PHP IPTC support : Yes
PHP XML support : Yes

Graphic Library
GD Version : bundled (2.0.34 compatible)
FreeType Support : Yes
FreeType Linkage : with freetype
T1Lib Support : No
GIF Read Support : Yes
GIF Create Support : Yes
JPG Support : Yes
PNG Support : Yes
WBMP Support : Yes
XPM Support : No
XBM Support : Yes
JIS-mapped Japanese Font Support : No

http://wordpress.org/extend/plugins/nextgen-gallery/