Is it possible to build dynamic images, specifically out of other resized images resulting in a collage, that can be delivered via webserver?

A "Hello World" picture, if you will.

Here is an example of the type of thing I want to eventually make. NO I'M NOT LOOKING FOR SOMEONE TO CODE THIS SPECIFICALLY.

http://card.psnprofiles.com/1/someone01.png

I've heard about things like Image::Magick and GD, but as with all modules and things, I'm never really sure which ones will work for me or how I'm supposed to install them. I've tried downloading various different archive files and sticking the PM files into perl/bin and I've tried various different installers but I can never get any of it to work because the instructions aren't clear enough. I'm using Windows XP SP2, an apache 2.2 webserver and perl v5.10.0

Also it would be nice to see some sample code that can do the basics: generate an image of a particular size, with some background color or image, insert an existing image, insert some random text in some random color, and maybe draw a line or shape or something (much less important). All in particular positions, sizes and opacity.

I just need something to get me started. All the stuff I've found on google has been a bit too generalized, ambiguous and over my head.

------------------------ EDIT ------------------------

This is what brief, concise help might look like.

- Hey dude, I think this module would be better for you
- download it here (direct link or link to site and specify which version I should get, ie: is compatible and has all the basics of point 2...)
- run the installer -- or -- put the files here and type this in the command prompt to compile it
- here's a quick sample set of basic functions

use blah;

$img = new image;

$img -> insertImage(paramenters);

$img -> changeColor(paramenters);
$img -> insertText(paramenters);

$img -> changeColor(paramenters);
$img -> insertLine(paramenters);

binmode;    # necessary ???
print $img;
[download]

Then when someone goes to site.com/cgi/hello.pl, it generates something for them.