vB Thumbs Recreation Distortion

[Powerlynx]

For some reason the thumbnails for the Avatar and Profile Pic on the Members List page will show some images that have clear png backgrounds with white square border backgrounds. I don't know if they are converted from clear pngs to jpegs or gifs, but this is happening to some pngs while it doesn't do it to others, yet they are all clear pngs. Very strange, and it looks bad.

This is also happening to the Avatar image on the Profile page in the left-hand sidebar. Images that definitely have clear png backgrounds are now showing white square backgrounds. And lastly, the Avatar image on the Activity Stream is showing massive distortion in the image even though that png image is crystal clear at a size a little bit larger than what is the setting for that Activity Stream. Does anybody know why this is happening and a fix for it? Is it server related?