Right, in fact as I mentioned in my post I used WinMerge to find out that that file has a conflict.
And merging that file does not appear easy at all, since I don't understand PHP.
If I figure out the merging, I will post it here. If someone else figures it out before me, please go ahead and post it first.
This will eventually affect ALL of us who are using Image Handler, since eventually most hosts will end up upgrading to 5.3...
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