well darn. i was hoping that somewhere in there i would see something diffrent than mine, lol the only diffrent thing i see is i dont have my med images set to zoom, oh and my zoom gravity is set to the southeast.
umm oh and i have images set to no_change

here is mine
Code:
IH resize images  	yes  	Info 
IH small image filetype 	no_change 	Info 
IH small image background 	255:255:255 	Info 
IH watermark small images 	no 	Info 
IH zoom small images 	yes 	Info 
IH small image hotzone 	no 	Info 
IH small image compression quality 	85 	Info 
IH medium image filetype 	no_change 	Info 
IH medium image background 	255:255:255 	Info 
IH watermark medium images 	no 	Info 
IH zoom medium images 	no 	 
IH medium image hotzone 	no 	Info 
IH medium image compression quality 	85 	Info 
IH large image filetype 	no_change 	Info 
IH large image background 	255:255:255 	Info 
IH watermark large images 	yes 	Info 
IH large image compression quality 	85 	Info 
IH large image maximum width 	750 	Info 
IH large image maximum height 	550 	Info 
IH watermark gravity 	Center 	Info 
IH zoom gravity 	SouthEast
well then, sorry no words of wisdom other than try to uninstall from the admin tools, clear the cahe and reinstall... doing that for me seems to fix things at times...