I've used GD (in PHP) for plotting graphs. It's not too bad . There are put-pixel and draw-line type functions.
I've only used GnuPlot once and that involved feeding it a text file of values to plot if I recall correctly. Read the docs though because I don't know how else you can use it.
Also maybe check out
imagemagick.
Update: OH right the whole reason I posted.
1) check the quality settings in GD's JPEG functions (also maybe use PNG instead).
2) I did a contract that involved generating thumbnails. The client wasn't impressed with GD's or ImageMagick's results even with sharpen and unsharp filters. In the end he generated them via a script in Photoshop. If you're on Linux maybe check out the
GIMP which can be scripted in Scheme (maybe perl, I'm not sure).