the correct version i the 2.0
execute the phpinfo.php and search for :
gd
GD Support enabled
GD Version 2.0 or higher
FreeType Support enabled
FreeType Linkage with freetype
JPG Support enabled
PNG Support enabled
WBMP Support enabled
you solve the stats but you have problems in future!!! not all modules set gif/png/jpg
revise your php.ini!!