After running your script and another test script based on the SYNOPSIS of the GD::Text::Wrap module, my conclusion is that unless I miss something critical about the usage, it may be something wrong with the module. Both scripts result image contains no text, but only some strange colored rectangles

use strict;
use warnings;

use GD;
use GD::Text::Wrap;

my $gd = GD::Image->new(800,600);
my $white = $gd->colorAllocate(255,255,255);
my $blue  = $gd->colorAllocate(0,0,255);

my $text = <<EOSTR;
Lorem ipsum dolor sit amet, consectetuer adipiscing elit,
sed diam nonummy nibh euismod tincidunt ut laoreet dolore
magna aliquam erat volutpat.
EOSTR

my $wrapbox = GD::Text::Wrap->new(
    $gd,
    line_space  => 4,
    color       => $blue,
    text        => $text,
);
$wrapbox->set_font(gdMediumBoldFont);
$wrapbox->set_font('arial', 12);
$wrapbox->set(align => 'left', width => 120);
$wrapbox->draw(10,140);

$gd->rectangle($wrapbox->get_bounds(10,140), $blue);

open my $file, '>', 'outfile.jpg';
binmode $file;
print { $file } $gd->jpeg;
close $file;
[download]

An alternative solution is to use PerlMagick (ImageMagick).

Update: revised as suggested by gmargo.

Update2: revised as suggested by gmargo :-) Thank you.