Index: image.imagemagick.inc
===================================================================
--- image.imagemagick.inc	(revision 151)
+++ image.imagemagick.inc	(working copy)
@@ -52,6 +52,13 @@
 }
 
 function _image_imagemagick_check_path($path, $attach_error_to = FALSE) {
+  // Try it out and return without errors on success
+  $handle = popen($path . " -version", 'r');
+  $im_version = fread($handle, 2096);
+  pclose($handle);
+  if (strpos($im_version, 'ImageMagick') !== FALSE) {
+    return TRUE;
+  }
   if (file_exists($path)) {
     return TRUE;
   }
Index: contrib/image_im_advanced/image_im_advanced.install
===================================================================
--- contrib/image_im_advanced/image_im_advanced.install	(revision 151)
+++ contrib/image_im_advanced/image_im_advanced.install	(working copy)
@@ -27,7 +27,7 @@
     }
     // If the imagemagick convert utility does not exist, indicate an error.
     $convert_path = variable_get('image_imagemagick_convert', '/usr/bin/convert');
-    if (!file_exists($convert_path)) {
+    if (!_image_imagemagick_check_path($convert_path)) {
       $requirements['imagemagick']['value'] = t('ImageMagick convert utility not found.');
       $requirements['imagemagick']['description'] = t('The ImageMagick image convert utility (@convert) does not exist. If you have ImageMagick installed, click <a href="@toolkit">here</a> to provide the path to the convert utility.', array('@convert' => $convert_path, '@toolkit' => url('admin/settings/image-toolkit')));
       $requirements['imagemagick']['severity'] = REQUIREMENT_ERROR;