Products Module, thumbnails and imagemagick

[tinhat]

Products module does not seem to generate thumbnails when I use ImageMagick as the image manipulation program.Any suggestions?

[edit]

CMS Version
1.5.4
Installed Modules
CMSMailer
1.73.14
FileManager
0.4.5
MenuManager
1.5.3
ModuleManager
1.2.1
News
2.9.3
nuSOAP
1.0.1
Printing
0.2.6
Search
1.5.3
ThemeManager
1.1.0
TinyMCE
2.4.13
CodePress
0.1.2
CGExtensions
1.15.3
SiteMapMadeSimple
1.1.3
Album
0.9.3
NMS
2.2
FrontEndUsers
1.6.2
Products
2.3
Cart
1.4.2
CGSimpleSmarty
1.4.1
Orders
1.2.4
SelfRegistration
1.2.3
CustomContent
1.5.3
Config Information
php_memory_limit:

process_whole_template:
true
max_upload_size:
10000000
default_upload_permission:
664
assume_mod_rewrite:
true
page_extension:

internal_pretty_urls:
false
use_hierarchy:
true
debug:
false
output_compression:
false
root_url:
http://demo.mysitemadesimple.com.au
root_path:
/home/mysite/demo (0775) Success
previews_path:
/home/mysite/demo/tmp/cache (0775) Success
uploads_path:
/home/mysite/demo/uploads (0775) Success
uploads_url:
http://demo.mysitemadesimple.com.au/uploads
image_uploads_path:
/home/mysite/demo/uploads/images (0775) Success
image_uploads_url:
http://demo.mysitemadesimple.com.au/uploads/images
use_smarty_php_tags:
false
locale:

default_encoding:
utf-8
admin_encoding:
utf-8
PHP Information:
Current PHP Version (phpversion):
5.2.6 Success
md5 function (md5_function):
On (True) Success
GD version (gd_version):
2 Success
tempnam function (tempnam_function):
On (True) Success
Magic quotes in runtime (magic_quotes_runtime):
Off (False) Success
PHP Effective Memory Limit (memory_limit):
32M Success
Maximum Execution Time (max_execution_time):
60 Success
PHP Safe Mode (safe_mode):
Off (False) Success
Session Save Path (session_save_path):
/var/lib/php/session (1777) Success
Checking if the httpd process can create a file inside of a directory it created (create_dir_and_file):
Success
PHP register_globals (register_globals):
Off (False) Success
PHP output_buffering (output_buffering):
1 Success
disable_functions in PHP (disable_functions):
  Success
PHP Open Basedir (open_basedir):
  Success
Test for remote URL (test_remote_url):
Success
fsockopen: Connection ok! Success
fopen: Connection ok! Success
File uploads (file_uploads):
On (True) Success
Maximum Post Size (post_max_size):
10M Success
Maximum Upload Size (upload_max_filesize):
10M Success
Basic XML (expat) support (xml_function):
On (True) Success
Test file_get_contents (file_get_contents):
On (True) Success
Test ini_set (check_ini_set):
On (True) Success
Server Information:
Server API (server_api):
apache2handler
Server Database (server_db_type):
MySQL (mysql)
Server Database Version (server_db_version):
5.0.22 Success
Server Software (server_software):
Apache/2.2.3 (CentOS)
Server Operating System (server_os):
Linux 2.6.18-92.1.10.el5xen On i686
Permission Information
tmp:
/home/mysite/demo/tmp (0775) Success
templates_c:
/home/mysite/demo/tmp/templates_c (0775) Success
modules:
/home/mysite/demo/modules (0775) Success
File Creation Mask (umask):
/home/mysite/demo/tmp/cache (0775) Success
config_file:
0664 Failure
config.php writable. It is more safe if you change permission to read-only