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i have had no problems with xcgallery.
mygalley does NOT work with he latest versions of NETPBM
try downloading version 9 of netpbm as it works fine with that.
as for your problems wth xcgal, i can only suggest to reinstall, copy all files, and read the readme file
if ur server has safe mode on it can be a problem.
but being as xcgal works on my XOOPS 2.0.7 site then it isn't a bug.. so it must be some configuration problem your end.