Trouble with resizing image

[eluser]jbads[/eluser]
When processing my image resize using the image manipulation class, I keep getting this error{

Your server does not support the GD function required to process this type of image.

My php info files says GD is enabled and GD version is bundled (2.0.34 compatible)

Here is my processing code

Code:

//resize the image
            $this->load->library('image_lib');
            
            $config['image_library'] = 'GD';
            $config['source_image'] = '../imguploads/'.$user_id.'/avatar.'.$files['extension'];
            $config['width'] = 190;
            $config['master_dim'] = 'width';

            
            if(!$this->image_lib->resize())
            {
                $message = array('error_message' => $this->image_lib->display_errors());
                $this->session->set_userdata($message);
                redirect('profile/editprofile');
            
            }

Any help on this one would be awesome thanks.