Michael Maclean has a new article today talking about the Pango graphics library and how it can be coupled with the Cairo PECL extension to more easily create better looking text in dynamic images.
The PECL/Cairo library is pretty good at drawing vector graphics (in our opinion, as the developers, at least!), but one thing it's not able to do by itself is draw text with mildly advanced layout. [...] That's because the developers of the Cairo library decided to let another more specialised library handle the job of text layout.
Michael has created a wrapper for Pango in PHP (github) and some sample code that can be used as a test to ensure it's all setup and working. He steps through each part of the image creation and describes what's happening and what each method is doing along the way.