This is just an FYI to all those who were looking at installing Image Handler 2 to have their product images resized on the fly when uploading. I needed to have the product images resized, but wanted to do it through the product page (not the Image Handler 2 page).

Imagine, then, my surprise when I went to edit the update_product.php file (in the admin/includes/modules directory) and found that there was already an automatic product image resize feature, but that it was turned off by default!!
(You need to have image Magick installed on your hosting server, but if image handler 2 works for you then you probably do already!)

So I turned it on, and guess what? It works!!

In the update_product.php file find the lines
// future image handler code
define('IMAGE_MANAGER_HANDLER', 0);
and change the zero to a 1, and Voila, image handler is now turned on and working, uploading large images will result in them automatically being resized to small and medium (and placed in the appropriate folders).