Image Format Error 4.x.x

Error[color=#9C3535][font=Tahoma, Geneva, sans-serif][size=3] The image format [/size][/font][/color][color=#9C3535][font=Tahoma, Geneva, sans-serif][size=3]is not supported by GD library installed on your server. The thumbnail was not created.[/size][/font][/color]

[color=#1C2837][font=arial, verdana, tahoma, sans-serif][size=3]What’s the best way to fix this issue at hand? I’m not sure if it’s a software related issue or a Hosting issue. Our original website 2.x.x had smaller thumbnails and some of those thumbnails are stretched in the latest version while some of the other pictures look fine. [/size][/font][/color]The main issue regarding the error message is the fact it’s hit or miss. I’m just looking for ideas. The website is blazing quick and works flawless minus this current setback. What type of GD Library is required to work with the latest edition of CS-Cart?