Errors after initial install

I’m trying to test out the free version to determine whether or not to recommend it to my client. I’ve had a couple of issues.

1. I got a series of errors stating that 404.shtml, 401.shtml, and 500.shtml were missing. My site is currently in a subdirectory becuase it is in beta. The directory that it’s looking for these files is in the main directory. Why would it not refer to the existing wordpress site structure? For example, my site is located at website/newsite and it’s looking in the website folder instead of newsite. Of course the files aren’t there. I temporarily created all three and the errors went away, but this is very confusing to me.

2. When I attempt to insert a form on a page (left everything as default) I get this error:
Fatal error: Call to undefined function imagecreatetruecolor() in /home/…wp-content/plugins/easyreservations/lib/captcha/captcha.php on line 94
I haven’t figured out a way around this one. Please help. I don’t want my client to even look at this plugin unless it’s running cleanly.

Thanks.

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