The upper left corner was placed correctly but the 
height was one pixel too small.
I have updated to 4.3.4 R1 and it seems to be ok now.

Thank you for your bug report. This issue has already been fixed
in the latest released version of PHP, which you can download at 
http://www.php.net/downloads.php

The bug is still existing in 4.3.4 R1.
So in PHP5 it is solved?

When the destination image is created with 
imagecreatetruecolor the behaviour seems to be ok.
So the bug is obviously for a palette based image.

What was the configure line you used? 

I used the downloadable version of www.entropy.ch with 
an installer. So I didnt change something of that. Here 
is what phpinfo tells about the configuration command:

'./configure' '--prefix=/usr/local/php' '--with-config-
file-path=/usr/local/php/lib' '--with-apxs' '--with-
iconv=/usr/local/php' '--with-openssl=/usr' '--with-
zlib=/usr' '--with-mysql' '--with-pgsql=/Users/marc/
cvs/entropy/php-module/build/postgresql-build' '--
enable-cgi' '--with-gd' '--with-png-dir=/usr/local/php' 
'--with-freetype-dir=/usr/local/php' '--with-t1lib=/
usr/local/php' '--with-jpeg-dir=/usr/local/php' '--
with-tiff-dir=/usr/local/php' '--with-curl=/usr/local/
php' '--with-mcal=/usr/local/php' '--with-mcrypt=/usr/
local/php' '--with-mhash=/usr/local/php' '--with-
pdflib=/usr/local/php' '--with-imap=../imap-2002d' '--
with-imap-ssl=/usr' '--with-expat-dir=/usr/local/php' 
'--with-gettext=/usr/local/php' '--with-dom=/usr/local/
php' '--with-dom-xslt=/usr/local/php' '--with-dom-
exslt=/usr/local/php' '--with-xslt-sablot=/usr/local/
php' '--with-mssql=/usr/local/php' '--enable-xslt' '--
with-ldap' '--with-xmlrpc' '--with-xml' '--with-iodbc' 
'--enable-sockets' '--enable-dbx' '--enable-dbase' '--
enable-trans-sid' '--enable-exif' '--enable-wddx' '--
enable-ftp' '--enable-mbstring'

Provide a complete (and short as possible) example script which we can use to try and reproduce this ourselves.
Also, if this happens with specific images, provide URLs to those too.

No feedback was provided. The bug is being suspended because
we assume that you are no longer experiencing the problem.
If this is not the case and you are able to provide the
information that was requested earlier, please do so and
change the status of the bug back to "Open". Thank you.