First install netpbm to a directory.
You can get the netpbm binaries here:
http://sourceforge.net/projects/gallery Download the netpbm-gallery package
Then decompress it and ftp the netpbm folder and all of its contents to your gallery directory,
Then point the gallery to this directory in the settings like this:
/home/YOURWEBNAMEHERE/public_html/gallery/netpbm
(you might need to goto cpanel to find your path if this isnt it, or ask your host for the true path to your site)
Plus you will need to set Conversion tool to netpbm in the Gallery settings also!
And lastly change the permissions on all of the files in the netpbm dir to 755.
Dan