Cant get text test examples to work

Hi All,

I am trying to get the text feature working with image cache actions. However when I go to the test-text preset I get this error:
Failed to find file grid800x600.png. in imagecache_actions_image_load() (line 75 of /home/zaleska/public_html/sites/all/modules/imagecache_actions/utility.inc).
Failed to locate the requested font lhandw.ttf. Cannot overlay text onto image.

If anyone has an idea on how to fix. Apologies Im not that programming savey. I also tried creating a fonts folder in my root directory and uploaded a .ttf file , and while i didn't get an error when I created a new custom preset, it didnt show up either.

I have looked for this issue and could not find any related topics so if anyone knows of any and can point me in the right direction I would be very greatful!

Thanks,
Marz