Help With PHP and image

We have a program that is a flash aplication however the image is created in PHP. the image for instance will process fine until it goes to our server which process the image as follows:

it should look like this:
http://www.personalisemyphone.com/test1/app/cdn/snapshots/project_102_0.jpg

however it turns out like this:
http://www.personalisemyphone.com/test1/app/editproject.php?&id=101

the first image is a smaller low quality image but it

if you would like to try it go to http://www.personalisemyphone.com/test1/index.php create an item with a larger image click okay confirm and then in the cart you can click edit and it will show you a greyed out image. Can anybody help/Advise?

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