Your server does not support the GD function required to process this type of image.Ci
During my project I faced similar problem. This link help me to solve it.
Replace
$this->load->library('image_lib', $config);
with
$this->load->library('image_lib');
// Set your config up
$this->image_lib->initialize($config);
// Do your manipulation
$this->image_lib->clear();
change your first lines from:
$original_path = './uploads/activity_images/original';
$resized_path = './uploads/activity_images/resized';
$thumbs_path = './uploads/activity_images/thumb';
$this->load->library('image_lib');
to:
$config['image_library'] = 'gd2';
$original_path = './uploads/activity_images/original';
$resized_path = './uploads/activity_images/resized';
$thumbs_path = './uploads/activity_images/thumb';
$this->load->library('image_lib', $config);