Hey hey hey, that did it!
Thanks so much!
Here's my working code for people who have trouble in the future:
<?php
Header("Content-Type: image/jpeg");
$size=GetImageSize("bgregsmiling.jpg");
$w=($size[0]);
$h=($size[1]);
$im1 = ImageCreate($w, $h);
$black = ImageColorAllocate($im1, 0, 0, 0);
$white = ImageColorAllocate($im1, 255, 255, 255);
$blue = ImageColorAllocate($im1, 0, 0, 255);
$red = ImageColorAllocate($im1, 255, 0, 0);
$purple = ImageColorAllocate($im1, 255, 0, 255);
$im=imageCreateFromJpeg("bgregsmiling.jpg");
imagecopy($im1, $im, 0, 0, 0, 0, $w, $h);
$font="/home/virtual/site2/fst/var/www/html/fonts/ALPHA.TTF";
imageTTFtext($im1,50,0,20,100,$black,$font,"Greg");
imageTTFtext($im1,50,0,20,200,$white,$font,"Greg");
imageTTFtext($im1,50,0,20,300,$purple,$font,"Greg");
imagejpeg($im1);
imageDestroy($im);
imageDestroy($im1);
?>