When uploading user images, you may occasionally get an error:
"A generic error occurred in GDI+"
This error occurs because there is not enough permission for the Save operation generate the thumbnail file and the standard file.
GDI+ actually requires two users to have permissions. The identity account should already have permission. The other account that needs permission is the account running the Application Pool for the website. Normally, this is the identity account, but if it is not, this user also needs permissions to the folder.
Make sure these two users have permissions to the entire Passageways folder on the web server, usually located at c:\inetpub\wwwroot\