so, I would do something like this?
<?php
header ("Content-type: image/png");
// Files.txt is the file required for all the random quotes
$fileLines = file("file.txt");
$count = count($fileLines);
srand((double)microtime()*1000000);
$i = rand(0,($count-1));
$string = $fileLines[$i] ;
// remove the newline (both unix and windows)
$string = preg_replace("/\r?\n$|\r[^\n]$/", "", $string);
$px = strlen($string) * 7.5;
$im = @imagecreatefromjpeg (myimage.jpg) or die ("Cannot Initialize new GD image stream");
$background_color = imagecolorallocate ($im, 255, 255, 255);
$trans=imagecolortransparent($im,$background_color);
$text_color = imagecolorallocate ($im, 0, 0, 255);
imagestring ($im, 2, 5, 10, $string, $text_color);
imagepng ($im);
?>
and replace imagecreate with imagecreatefromjpeg??