SOLVED!!!!

I FOUND IT! OLE!

COMMENT THOSE LINES 789-791

the code from lines 777-802       

 }
       
        if ($imagetype == 'display')
            $file_name_dest = JPATH_ROOT."/media/display_temp.jpg";
        else
            $file_name_dest = JPATH_ROOT."/media/original_temp.jpg";
           
        $fh = fopen($file_name_dest,'wb');
        fclose($fh);
      
        //deploy the image with generalized image deploy function
         $this->imageResource= $outputProc($im, $file_name_dest, 100);
        //imagedestroy($im);     comment this
        // imagedestroy($im_copy); comment this
        // imagedestroy($watermark); comment this
     }
     
    /**
     * Function that takes an image and displays it with the predefined watermark text
     * @param string Name of the image in question
     * @param string Font used for watermark
     * @param string Text size in pixels
     * @param int Vertical spacing between text
     * @param int Horizontal spacing between text
     * @param boolean Shadow text yes or no
     */