[Plugin: NextGEN Gallery] Thumbnail Creation Error – Please help

Hi, can someone help me too! I just upgraded my WP version to 2.8.4 and also upgraded the NextGen Gallery to version 1.3.6. After the upgrade, the NextGen gallery can’t seem to generate the thumbnails anymore for new pictures that i add. I’ve tried adding the pictures through FTP but the thumbnails still don’t appear. Funny thing is if i click on the thumbnail (which is currently shown as a square box with a red x on it), the full sized image will appear. It’s only the thumbnail that doesn’t seem to work.

Here’s my server settings:
Operating System : Linux
Server : Apache/2.2.13 (Unix) mod_ssl/2.2.13 OpenSSL/0.9.8k DAV/2 mod_auth_passthrough/2.1 FrontPage/5.0.2.2635
Memory usage : 23.36 MByte
MYSQL Version : 5.0.81-community-log
SQL Mode : Not set
PHP Version : 5.2.9
PHP Safe Mode : Off
PHP Allow URL fopen : On
PHP Memory Limit : 100M
PHP Max Upload Size : 2M
PHP Max Post Size : 8M
PHP Max Script Execute Time : 30s
PHP Exif support : Yes ( V1.4 )
PHP IPTC support : Yes
PHP XML support : Yes

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 : Yes
XBM Support : Yes
JIS-mapped Japanese Font Support : No

I’ve even tried re-uploading an older version of NGG but it still doesn’t work. Can anyone help me? Thanks!

I’m getting two errors when I upload photos…

“Warning: imagecreatefromjpeg() [function.imagecreatefromjpeg]: gd-jpeg, libjpeg: recoverable error: Corrupt JPEG data: 35 extraneous bytes before marker 0xd6 in /home/global/public_html/wp/wp-content/plugins/nextgen-gallery/lib/gd.thumbnail.inc.php on line 183

Warning: imagecreatefromjpeg() [function.imagecreatefromjpeg]: ‘/home/global/public_html/wp/wp-content/gallery/estonia/russian-market-8.jpg’ is not a valid JPEG file in /home/global/public_html/wp/wp-content/plugins/nextgen-gallery/lib/gd.thumbnail.inc.php on line 183
russian-market-8.jpg (Error : Create Image failed. Check memory limit)”

My NextGEN gallery is: Version 1.3.6

My WP is: 2.8.4

My host is: http://www.dream-hosting.co.uk/

Server settings:

* Operating System : Linux
* Server : Apache/2.2.13 (Unix) mod_ssl/2.2.13 OpenSSL/0.9.8e-fips-rhel5 mod_auth_passthrough/2.1 mod_bwlimited/1.4 FrontPage/5.0.2.2635 PHP/5.2.10
* Memory usage : 18.59 MByte
* MYSQL Version : 5.0.81-community-log
* SQL Mode : Not set
* PHP Version : 5.2.10
* PHP Safe Mode : Off
* PHP Allow URL fopen : On
* PHP Memory Limit : 128M
* PHP Max Upload Size : 32M
* PHP Max Post Size : 8M
* PHP Max Script Execute Time : 30s
* PHP Exif support : Yes ( V1.4 )
* PHP IPTC support : Yes
* PHP XML support : Yes

Any help whatsoever would be most appreciated – I am a complete beginner and would likely need any assistance spelling out!
Many thanks!
Tom.