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[hyperion]

All the admin has to do is check php.ini.  In the extensions section, you find a series of extensions that you uncomment to activate various functionalities. There is an extension for GD and one for GD2.  Just make sure that only the GD2 one is uncommented (and thus active).

If this doesn't help, I will suggest you try the 1.3 beta when it is released. (Should be in the next few days.) The multiple upload code takes advantage of PHP error codes and such in later versions of PHP to deliver more specific error messages regarding uploads. If you have CVS software, you can do an anonymous checkout now.  

Also, you might try a test install of the current package to be sure that this isn't a corrupted file or something.