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xoopsgallery only works if your server has NEtPBM or imageMagick installed.
This has nothing to do with the module. It must be seperately being installed by yourown. If you have no access to your PHP installation, you have to ask your ISP to install it.
If I remember right, go to
http://gallery.sourceforge.net - and look for Tutorials and more info
Greets, netsroht
Sorry for my bad english. I'm german.