Cannot Upload images or even a logo

Hi all 

I'm setting up a new install for an association i run and i'm having issues uploading a new logo and pictures in general

The new product i want to install an image but get the error

Warning: Could not process image: No image processing library available in ~/includes/functions/func_image.inc.php (Line 124) Warning: Could not create link for missing resource (/home/acqp1964/public_html/Store/) in ~/includes/library/lib_document.inc.php (Line 280)

If i go to install a log i get 

No image processing library available

Ive gone to the lib_document_inc.php and i have this 

if (!is_file($resource)) {
        trigger_error('Could not create link for missing resource ('. $resource.')', E_USER_WARNING);
        return document::link(preg_replace('#^'. preg_quote(DOCUMENT_ROOT, '#') .'#', '', $resource));

So not really sure what i need to do, can any of you experts help please

Regards

Gerry

remove the ; from
extension=gd