Got same error on images upload process at PS 1.6.0.9 when moved deployed site to new server (Ubuntu 14.04 x64 at amazon AWS EC2 Cloud).
That issue fixed easily with info provided by Apache err log - missed php-gd library found there!
$ sudo apt-get install php5-gd
and we are again friends)
If it is possible to add test on all needed library presence at BO AdminInformation Controller, that will get a great convenience to all Prestashop movers!
Sincerely Yours,
Vic