image attachement / gallery issue

[Chadi]

Having some major VB Gallery / Image attachment problem:

#1
Ran general update > rebuild attachments and getting these errors:

Processing: Attachment : 136 (gif)
Processing: Attachment : 137 (jpeg) Error
Processing: Attachment : 138 (jpg) Error
Processing: Attachment : 139 (jpg) Error
Processing: Attachment : 140 (jpg) Image is already <= thumbnail size
Processing: Attachment : 141 (jpg) Image is already <= thumbnail size
Processing: Attachment : 142 (gif)
Processing: Attachment : 143 (jpg) Error
Processing: Attachment : 144 (jpg) Image is already <= thumbnail size
Processing: Attachment : 147 (jpg) Error
Processing: Attachment : 148 (jpg) Error
Processing: Attachment : 149 (jpg) Error
Processing: Attachment : 150 (jpg) Image is already <= thumbnail size
Processing: Attachment : 151 (gif) Image is already <= thumbnail size
Processing: Attachment : 152 (gif) Image is already <= thumbnail size
Processing: Attachment : 153 (jpg) Image is already <= thumbnail size
Processing: Attachment : 154 (jpg) Error
Processing: Attachment : 155 (jpg) Error
Processing: Attachment : 156 (jpg) Image is already <= thumbnail size
Processing: Attachment : 157 (gif)
Processing: Attachment : 158 (gif)
Processing: Attachment : 160 (jpg) Error
Processing: Attachment : 161 (gif)
Processing: Attachment : 162 (png)
Processing: Attachment : 163 (png)
Processing: Attachment : 164 (png)
Processing: Attachment : 165 (png)
Processing: Attachment : 167 (png)
Processing: Attachment : 168 (png)
Processing: Attachment : 169 (jpg) Error
Processing: Attachment : 170 (jpg) Error
Processing: Attachment : 171 (gif)
Processing: Attachment : 172 (jpg) Error
Processing: Attachment : 173 (png)
Processing: Attachment : 174 (jpg) Image is already <= thumbnail size
Processing: Attachment : 177 (jpg) Error
Processing: Attachment : 179 (jpg) Image is already <= thumbnail size

#2
See attached. Almost all images are not loading in the gallery:
http://www.talkjesus.com/gallery.php

Image processing library is set to GD. GD module is installed on my server.

Attachments are currently being stored in the filesystem at /home/user/public_html/images/attachments

"attachments" directory has 777 recursively as well.

Here's the thing, if I click the picture title link in any of those blank thumbnail boxes the pictures do show.

Running
vBulletin 4.2.0 PL4
PHP 5.4.27