Check your php's GD version displayed in "module check".
If you can use php bundled GD that have treating 32bit color bug, You can change like this:
module/myalbum/include/functions.php
line 87
if( $bundled_2 ) {
if( 0 ) {
$dst_img = ImageCreate($new_w,$new_h) ;
ImageCopyResampled($dst_img,$src_img,0,0,0,0,$new_w,$new_h,imagesx($src_img),imagesy($src_img));
} else {
If photo submitting will hang up after changing this, your php's GD version is bad bundled version.
Perhaps, your hosting's php didn't use "bundled GD", when you used 1.04.
Change your hosting to allow ImageMagick.