I found that creating PIL on Ubuntu can cause problems because libpng is in a non-standard location and PIL cannot find it.
In the folder into which the PIL was downloaded, edit setup.py . Find the following line:
JPEG_ROOT = None
and change it to
JPEG_ROOT = '/usr/lib/i386-linux-gnu/'
then reconfigure PIL and check for PNG support messages at the end of the message.
It's hard for me to change JPEG_ROOT if you want to add PNG support, but setup.py will also look in JPEG_ROOT for libpng .
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