My first question would be, did your system admin enable GD support for PHP.
For me, I did
./configure --with-gd
You would also need to specify --with-libjpeg-dir and --with-libpng-dir. And they need to be installed.
You can also do <?phpinfo() ?>
Check the output, and you should have
gd
GD Support enabled
GD Version 1.6.2 or higher
FreeType Support enabled
FreeType Linkage with freetype
JPG Support enabled
PNG Support enabled
WBMP Support enabled
only then that you can start using GD with PHP.