I’m using sorl-thumbnail, PIL, and Django on a webserver to dynamically create thumbnails in templates.
PIL is installed with PNG support, but for some reason the transformations are creating some really bizarre artifacts on the transparent portions of the images.
I used this gist on Github to install the required dependencies: https://raw.github.com/gist/1225180/eb87ceaa7277078f17f76a89a066101ba2254391/patch.sh
Here is the template code that generates the images (I don’t think this is where the problem is, but can’t hurt to show you):
{% thumbnail project.image "148x108" crop="center" as im %}
<img src='{{ im.url }}' />
{% endthumbnail %}
Below is an example of what happens. Any help is greatly appreciated!
Before

After

It looks like your resulting image is a JPEG. The JPEG format does not support transparency. Try changing your thumbnail template to this: