This week's book giveaway is in the OO, Patterns, UML and Refactoring forum. We're giving away four copies of Refactoring for Software Design Smells: Managing Technical Debt and have Girish Suryanarayana, Ganesh Samarthyam & Tushar Sharma on-line! See this thread for details.
You might want to check out the Java Jpeg Encoder at: http://www.obrador.com/essentialjpeg/jpeg.htm Once you've got a Graphics object or Image with the desired graphics and text, you can use the JpegEncoder to write it to a Jpeg. There are also Gif encoders available (see www.acme.com), although technically you need a license from Unisys if you plan on using the gif encoding algorithm in your program.
I’ve looked at a lot of different solutions, and in my humble opinion Aspose is the way to go. Here’s the link: http://aspose.com