i forgot tell you , i work in local server and this is my config data :

$cfgGalleryDirWeb = 'http://localhost/forum/gallery/'; // absolute web path to gallery files
$cfgImageDirWeb = 'http://localhost/forum/gallery/images/'; // absolute web path to image dir
$cfgImageDirLocal = 'C:/apache/htdocs/forum/gallery/images/'; //The local path to the image dir
$cfgThumbDirWeb = 'http://localhost/forum/gallery/thumbnails/'; // absolute web path to thumbnails dir
$cfgThumbDirLocal = 'C:/apache/htdocs/forum/gallery/thumbnails/'; // The local path to the thumbnails dir
// Put the forums usernumbers for the OakGallery Admins here (comma separated).
// Like this: '1,2,3,4' - NOT like this: '1, 2, 3' !!!
$cfgAdminList = '2';
$cfgForumDir = 'C:/apache/htdocs/forum/'; // The local path to the forum dir
$cfgGalleryDir = 'C:/apache/htdocs/forum/gallery/'; // The local path to the vGallery dir
$cfgConvert = '/usr/bin/X11/convert'; // Local path to ImageMagick's convert
$cfgComposite = '/usr/bin/X11/composite'; // Local path to ImageMagick's composite

Trident, i dont know how it works in a local server ... sorry ...

I dont think that you should use http:// or c:

Try something like this:
$cfgGalleryDirWeb = '/forum/gallery/'; // absolute web path to gallery files
$cfgImageDirWeb = '/forum/gallery/images/'; // absolute web path to image dir
$cfgImageDirLocal = '/apache/htdocs/forum/gallery/images/'; //The local path to the image dir
$cfgThumbDirWeb = '/forum/gallery/thumbnails/'; // absolute web path to thumbnails dir
$cfgThumbDirLocal = '/apache/htdocs/forum/gallery/thumbnails/'; // The local path to the thumbnails dir
// Put the forums usernumbers for the OakGallery Admins here (comma separated).
// Like this: '1,2,3,4' - NOT like this: '1, 2, 3' !!!
$cfgAdminList = '2';
$cfgForumDir = '/apache/htdocs/forum/'; // The local path to the forum dir
$cfgGalleryDir = '/apache/htdocs/forum/gallery/'; // The local path to the vGallery dir
$cfgConvert = '/usr/bin/X11/convert'; // Local path to ImageMagick's convert
$cfgComposite = '/usr/bin/X11/composite'; // Local path to ImageMagick's composite

Doh! It was my fault. I hadn't added my userid. :D

Zelda-King, good that you solved it ! :)

I have a problem uploading though. It says Error moving file - Please contact system administrator.

The webservers user must have write access to /images and /thumbnails

That should do the trick.

It sort of did. I'm seeing a red-x though. Is it possible to delete corrupt images?

Just click the bad thumb the click "Delete"

I should have spotted that. Anyway, when I delete a picture I get;

Warning: unlink() failed (No such file or directory) in /home/virtual/site62/fst/var/www/html/bb/gallery/remove_image.php on line 67
Error deleting file(s)

1 errors.

Query or Database Error - Please contact system administrator

That's probably me though. I tried deleting from the FTP.

EDIT: Nope! Does it with other pics too.

Zelda-King, even if the picture is missing the database entry should be deleted. Or did the upload of the picture work but not the Thumb ?