I can't find any documentation on the KO3 image library version so I'm assuming it will work the same as the previous one.
I'm using Image::factory($filename)..... etc.
However, I'm getting this error message - Installed GD does not support images - even though I've used the old kohana 2.x image library with no problems in the same hosting environment.
You're calling save but not defining a filename with an extension, so Image/GD does not know how you want the file saved. There is supposed to be a "type" value, as in "Installed GD does not support PNG images", but apparently the file you are saving as has no extension.