(using IIS 5.0)
I upgraded php 4.0.4 to 4.0.6.  I had these lines in my code to resize images:
$im2 = ImageCreate($twidth,$theight) or die("couldn't create image");
ImageCopyResized($im2,$im,0,0,0,0,$twidth,$theight,$width,$height);
ImageJpeg($im2, $dir_root.$files[$i]);

with the old 1.6 version of the gd dll, the resize worked fine, but the new version is saving these pictures in shades of blue and black and sometimes grey and black.  Is this maybe an Indian issue? To test, I didn't touch the php version but simply replaced the new 2.0 gd dll with the old 1.6 gd dll and the pictures went back to full color when being resized.  

Please let me know when this dll is fixed so I can implement it, for now I'm leaving the old gd dll in my extensions folder.