Well unfortunately we can't tell much about how php was built on your machine.
'./configure'
Simply indicates the automatic configuration script was used which doesn't let us see each option used to build php. Your next step should be to ask your host "Was php built with GD?" In other words, find out in that '--with-gd' option was used.
It very well could be that gd is installed but php was never built to recognize or use it. I had that very problem at one time.