There have been some queries regarding the installation of ImageMagic on e-smith/SME server and I wish to advise that I believe I have installed imageMagick on my freshly built SME server v5 with update 3 applied.
I have also upgraded PHP to v5 following instructions in Dan Brown's post.
Installing Image Magick:
rpm -ivh ./libtiff-3.5.5-7.i386.rpm
rpm -ivh ./XFree86-libs-4.0.3-5.i386.rpm
rpm -ivh ./libungif-4.1.0-7.i386.rpm
rpm -ivh ./ImageMagick-5.2.7-2.i386.rpm
On running convert from the console, I see the command paramaters echoed to the screen.