Image Handler 2 (for ZC v1.3.8 ONLY) Support

[ckosloff]

1. How do I figure out if GD libraries or ImageMagick is installed on my server? If I can choose, which is better for IH?

<?php phpinfo(); ?>
Create a blank file in your store root, put the text above in it, save, name the file phpinfo.php (it is the phpinfo built-in function), point your browser to it and scroll down to the appropriate section.
You don't need to choose between GD and ImageMagick, depending on the server and GD version you might have different versions of it bundled into PHP (native, non-native), but it makes no difference for IH2.
I am now going to test on 1.3.9d, phew!