Are you actually nesting PHP opening and closing tags like this:
<?php
if ( is_page(‘5’) ) { // Show nothing.
}
else {
<?php displaytestimonials(); ?>
}
?>
If so, you have to erase them
Have you try rebuilding your .htaccess?
Not necessarily. You can use timthumb to re-size images on the flight. Just need to plug the code every where in the theme that you want to publish images.
Timthumb: http://code.google.com/p/timthumb/
Would need a little more information. Error 500 is very vague. You want to check that your .htaccess file does not contain errors. If you are having problems start with a blank .htaccess file.