[eluser]megabyte[/eluser]
Ok, first of all is the image actually making it to your server? Regardless if the resize functions work or not it should be there. If it's not then your path you are saving it to is wrong.
Secondly try echoing
$CI->config->item('live_server_path') . 'mbg/images/' . $directory . '/email/' . $data['raw_name'] . $extension;
and seeif the path makes sense.