Impossible to upload Image

I have a fresh install of Drupal v. 6.16 on Mac OS 10.6 as well as on my server (which is being hosted by bluehost). On my mac I am running PHP 5.3.1.

I keep getting the following errors when trying to upload a photo for a user profile:
warning: imagecreatetruecolor() [function.imagecreatetruecolor]: Invalid image dimensions in /home1/tacticso/public_html/bsg/includes/image.gd.inc on line 95.
warning: imagecopyresampled(): supplied argument is not a valid Image resource in /home1/tacticso/public_html/bsg/includes/image.gd.inc on line 121.
warning: imagejpeg(): supplied argument is not a valid Image resource in /home1/tacticso/public_html/bsg/includes/image.gd.inc on line 212.
warning: imagedestroy(): supplied argument is not a valid Image resource in /home1/tacticso/public_html/bsg/includes/image.gd.inc on line 124.
The selected file me.jpg could not be uploaded. The image is too large; the maximum dimensions are 150X200 pixels.

My images are well below the 150X200 mark (75 X 100). This error always comes up. Any ideas what is going on?

Thanks in Advance,
-Davis