This worked just fine in version 4.1.2. There is just an broken image on the webpage.

Here is the code i'm using.

<?
Header ("Content-type: image/jpeg");
$im = ImageCreate(800,70) or die ("Cannot initialize GD library");
$white = ImageColorAllocate ($im, 255, 255, 255);
$blue = ImageColorAllocate ($im, 48, 100, 152);
ImageTTFText ($im, 42, 0, 0, 58, $blue, "/usr/share/fonts/ttf/verdana.ttf", "$agitext");
ImageJpeg ($im, "", 95) or die ("Cannot create image");
$filepath ="./agi";
$filename = "agi.jpg";
ImageJpeg ($im, "$filepath/$filename", 95);
ImageDestroy ($im);
?>