I've gone through adding the ext, installing imagemagick, installing ghostscript to no end.
Here is the error log.
2016-04-08T11:41:22-04:00 ERR (3): Omeka_File_Derivative_Exception: ImageMagick is not properly configured: invalid directory given for the ImageMagick command! in E:\inetpub\wwwroot\WebApps\application\libraries\Omeka\File\Derivative\Strategy\ExternalImageMagick.php:83
Stack trace:
#0 E:\inetpub\wwwroot\WebApps\application\libraries\Omeka\File\Derivative\Strategy\ExternalImageMagick.php(39): Omeka_File_Derivative_Strategy_ExternalImageMagick->_getConvertPath()
#1 E:\inetpub\wwwroot\WebApps\application\libraries\Omeka\File\Derivative\Creator.php(76): Omeka_File_Derivative_Strategy_ExternalImageMagick->createImage('C:\\Windows\\TEMP...', 'C:\\Windows\\TEMP...', 'fullsize', 800, 'image/jpeg')
#2 E:\inetpub\wwwroot\WebApps\application\models\File.php(356): Omeka_File_Derivative_Creator->create('C:\\Windows\\TEMP...', 'e31584dd018388b...', 'image/jpeg')
#3 E:\inetpub\wwwroot\WebApps\application\models\Job\FileProcessUpload.php(22): File->createDerivatives()
#4 E:\inetpub\wwwroot\WebApps\application\libraries\Omeka\Job\Dispatcher\Adapter\Synchronous.php(25): Job_FileProcessUpload->perform()
#5 E:\inetpub\wwwroot\WebApps\application\libraries\Omeka\Job\Dispatcher\Default.php(136): Omeka_Job_Dispatcher_Adapter_Synchronous->send('{"className":"J...', Array)
#6 E:\inetpub\wwwroot\WebApps\application\models\File.php(203): Omeka_Job_Dispatcher_Default->send('Job_FileProcess...', Array)
#7 E:\inetpub\wwwroot\WebApps\application\libraries\Omeka\Record\AbstractRecord.php(277): File->afterSave(Array)
#8 E:\inetpub\wwwroot\WebApps\application\libraries\Omeka\Record\AbstractRecord.php(550): Omeka_Record_AbstractRecord->runCallbacks('afterSave', Array)
#9 E:\inetpub\wwwroot\WebApps\application\models\Item.php(335): Omeka_Record_AbstractRecord->save()
#10 E:\inetpub\wwwroot\WebApps\application\models\Builder\Item.php(204): Item->saveFiles()
#11 E:\inetpub\wwwroot\WebApps\application\libraries\globals.php(567): Builder_Item->addFiles('Upload', 'file', Array)
#12 E:\inetpub\wwwroot\WebApps\application\models\Item.php(320): insert_files_for_item(Object(Item), 'Upload', 'file', Array)
#13 E:\inetpub\wwwroot\WebApps\application\models\Item.php(230): Item->_uploadFiles()
#14 E:\inetpub\wwwroot\WebApps\application\libraries\Omeka\Record\AbstractRecord.php(277): Item->beforeSave(Array)
#15 E:\inetpub\wwwroot\WebApps\application\libraries\Omeka\Record\AbstractRecord.php(531): Omeka_Record_AbstractRecord->runCallbacks('beforeSave', Array)
#16 E:\inetpub\wwwroot\WebApps\application\libraries\Omeka\Controller\AbstractActionController.php(229): Omeka_Record_AbstractRecord->save(false)
#17 E:\inetpub\wwwroot\WebApps\application\controllers\ItemsController.php(91): Omeka_Controller_AbstractActionController->editAction()
#18 E:\inetpub\wwwroot\WebApps\application\libraries\Zend\Controller\Action.php(516): ItemsController->editAction()
#19 E:\inetpub\wwwroot\WebApps\application\libraries\Zend\Controller\Dispatcher\Standard.php(308): Zend_Controller_Action->dispatch('editAction')
#20 E:\inetpub\wwwroot\WebApps\application\libraries\Zend\Controller\Front.php(954): Zend_Controller_Dispatcher_Standard->dispatch(Object(Zend_Controller_Request_Http), Object(Zend_Controller_Response_Http))
#21 E:\inetpub\wwwroot\WebApps\application\libraries\Zend\Application\Bootstrap\Bootstrap.php(105): Zend_Controller_Front->dispatch()
#22 E:\inetpub\wwwroot\WebApps\application\libraries\Zend\Application.php(384): Zend_Application_Bootstrap_Bootstrap->run()
#23 E:\inetpub\wwwroot\WebApps\application\libraries\Omeka\Application.php(79): Zend_Application->run()
#24 E:\inetpub\wwwroot\WebApps\admin\index.php(28): Omeka_Application->run()
#25 {main}
I've tried everything. If we can't have thumbnails its fine, but if you can think of something let me know. Getting this running on IIS has been a learning experience.