I had a similar problem trying to re-size avatar thumbs. I submitted a ticket and they changed my image library setting from imagemagik to "GD". For some reason imagemagik wasn't re-sizing like it should even though it worked fine on my UBBThreads forum. When they set my VB to use GD it worked fine. Not sure if this has anything to do with your problem, but thought I'd mention it as it sounds kinda similar.
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