I am using a php thumbnail script; its working on server but not on my local server. How I can run this script into my local server too ?

Not enough information. Could be just some settings.

As pritaeas mentioned, it is probably a misconfiguration on localhost. Try to run this code in localhost:

<?php
if ( extension_loaded( 'gd' ) && function_exists( 'gd_info' ) ) {
                echo "You have the GD Library installed";
} else {
                echo "GD Library is not installed";
}
?>
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Before we start suggesting fixes we need to know which script you are using, whether it relies on ImageMagick or GD or some other library. Which versions of PHP are you currently using (remote and local).

I would encourage you to read the PHP sticky with regard to asking suitable questions. Pritaeas has included some excellent tips and resources - I find myself referring to this myself when I want to ask something:

http://www.daniweb.com/web-development/php/threads/435023/read-this-before-posting-a-question

GD library is installed.

below is the code

ini_set('memory_limit','64M');
$site_config['document_root'] = $_SERVER['DOCUMENT_ROOT'];
$thumb_size = 128; //all thumbnails are this maximum width or height if not specified via get
$site_config['absolute_uri']=str_replace('///','//',str_replace('thumb.php?'.$_SERVER['QUERY_STRING'],'',$_SERVER['REQUEST_URI']));
$site_config['path_thumbnail']=$site_config['absolute_uri'].'/cache/images/';   //where to cache thumbnails on the server, relative to the DOCUMENT_ROOT
$image_error=$site_config['document_root'].$site_config['absolute_uri'].'/images/icons/image_error.png';    // used if no image could be found, or a gif image is specified

$thumb_size_x = 0;
$thumb_size_y = 0;

# Define quality of image
if (@$_GET["quality"]<>0) {
    $quality    = $_GET["quality"];
} else {
    $quality    = 80;
}

# Define size of image (maximum width or height)- if specified via get.
if (@$_GET["size"]<>0) {
    $thumb_size=intval($_GET["size"]);
}
if (intval(@$_GET["sizex"])>0)
{
    $thumb_size_x=intval($_GET["sizex"]);
    if (intval(@$_GET["sizey"])>0) 
    {
        $thumb_size_y=intval($_GET["sizey"]);
    } else {
        $thumb_size_y=$thumb_size_x;
    }
}

if (file_exists($_GET['file']))
{
    $filename=$_GET['file'];
} else {
    $filename=str_replace('//','/',$site_config['document_root'].$site_config['absolute_uri'].'/'.$_GET["file"]);
}

# If calling an external image, remove document_root
if (substr_count($filename, "http://")>0)

{
    $filename=str_replace($site_config['document_root'].$site_config['absolute_uri'].'/','',$filename);
}

$filename=str_replace("\'","'",$filename);
$filename=rtrim($filename);
$filename=str_replace("//","/",$filename);
$fileextension=substr($filename, strrpos ($filename, ".") + 1);

$cache_file=str_replace('//','/',$site_config['document_root'].$site_config['path_thumbnail'].md5($filename.@$thumb_size.@$thumb_size_x.@$thumb_size_y.@$quality).'.'.$fileextension);

# remove cache thumbnail?
if (@$_GET['nocache']==1)
{
    if (file_exists($cache_file))
    {
        #remove the cached thumbnail
        unlink($cache_file);
    }
}

if ((file_exists($cache_file)) && (@filemtime($cache_file)>@filemtime($filename)))
{
    header('Content-type: image/'.$fileextension);
    header("Expires: Mon, 26 Jul 2030 05:00:00 GMT");    
    header('Content-Disposition: inline; filename='.str_replace('/','',md5($filename.$thumb_size.$thumb_size_x.$thumb_size_y.$quality).'.'.$fileextension));
    echo (join('', file( $cache_file )));
    exit; # no need to create thumbnail - it already exists in the cache
}

# determine php and gd versions
$ver=intval(str_replace(".","",phpversion()));
if ($ver>=430)
{
    $gd_version=@gd_info();
}

# define the right function for the right image types
if (!$image_type_arr = @getimagesize($filename))
{
    header('Content-type: image/png');
    if(@$_GET['noerror'])
    {
        exit;
    } else {    
        echo (join('', file( $site_config['document_root'].$image_error )));
        exit;
    }
} 
$image_type=$image_type_arr[2];

switch ($image_type)
{
    case 2: # JPG
        if (!$image = @imagecreatefromjpeg ($filename))
        {
            # not a valid jpeg file
            $image = imagecreatefrompng ($image_error);
            $file_type="png";
            if (file_exists($cache_file))
            {
                # remove the cached thumbnail
                unlink($cache_file);
            }
        } 
        break;

    case 3: # PNG
        if (!$image = @imagecreatefrompng ($filename))
        {
            # not a valid png file
            $image = imagecreatefrompng ($image_error);
            $file_type="png";           
            if (file_exists($cache_file))
            {
                # remove the cached thumbnail
                unlink($cache_file);
            }
        }            
        break;

    case 1: # GIF 
        if (!$image = @imagecreatefromgif ($filename))
        {
            # not a valid gif file
            $image = imagecreatefrompng ($image_error);
            $file_type="png";           
            if (file_exists($cache_file))
            {
                # remove the cached thumbnail
                unlink($cache_file);
            }
        }            
        break;
    default:
        $image = imagecreatefrompng($image_error); 
        break;

}

# define size of original image 
$image_width = imagesx($image);
$image_height = imagesy($image);

# define size of the thumbnail  
if (@$thumb_size_x>0)
{
    # define images x AND y
    $thumb_width = $thumb_size_x;
    $factor = $image_width/$thumb_size_x;
    $thumb_height = intval($image_height / $factor); 
    if ($thumb_height>$thumb_size_y)
    {
        $thumb_height = $thumb_size_y; 
        $factor = $image_height/$thumb_size_y;
        $thumb_width = intval($image_width / $factor); 
    }       
} else {
    # define images x OR y
    $thumb_width = $thumb_size; 
    $factor = $image_width/$thumb_size;
    $thumb_height = intval($image_height / $factor); 
    if ($thumb_height>$thumb_size)
    {
        $thumb_height = $thumb_size; 
        $factor = $image_height/$thumb_size;
        $thumb_width = intval($image_width / $factor); 
    }
}

# create the thumbnail
if ($image_width < 4000) //no point in resampling images larger than 4000 pixels wide - too much server processing overhead - a resize is more economical
{
    if (substr_count(strtolower($gd_version['GD Version']), "2.")>0)
    {
        //GD 2.0 
        $thumbnail = ImageCreateTrueColor($thumb_width, $thumb_height);
        imagecopyresampled($thumbnail, $image, 0, 0, 0, 0, $thumb_width, $thumb_height, $image_width, $image_height);
    } else {
        //GD 1.0 
        $thumbnail = imagecreate($thumb_width, $thumb_height);
        imagecopyresized($thumbnail, $image, 0, 0, 0, 0, $thumb_width, $thumb_height, $image_width, $image_height);         
    }   
} else {
    if (substr_count(strtolower($gd_version['GD Version']), "2.")>0)
    {
        # GD 2.0 
        $thumbnail = ImageCreateTrueColor($thumb_width, $thumb_height);
        imagecopyresized($thumbnail, $image, 0, 0, 0, 0, $thumb_width, $thumb_height, $image_width, $image_height);
    } else {
        # GD 1.0 
        $thumbnail = imagecreate($thumb_width, $thumb_height);
        imagecopyresized($thumbnail, $image, 0, 0, 0, 0, $thumb_width, $thumb_height, $image_width, $image_height);
    }
}

# insert string
if (@$_GET['tag']<>"")
{
    $font=1;
    $string= $_GET['tag'];
    $white = imagecolorallocate ($thumbnail, 255, 255, 255);
    $black = imagecolorallocate ($thumbnail, 0, 0, 0);
    imagestring ($thumbnail, $font, 3, $thumb_height-9, $string, $black);
    imagestring ($thumbnail, $font, 2, $thumb_height-10, $string, $white);
}

switch ($image_type)
{
    case 2: # JPG
        header('Content-type: image/jpeg');
        header('Content-Disposition: inline; filename='.str_replace('/','',md5($filename.$thumb_size.$thumb_size_x.$thumb_size_y.$quality).'.jpeg'));
        @imagejpeg($thumbnail,$cache_file, $quality);
        imagejpeg($thumbnail,'',$quality);

        break;
    case 3: # PNG
        header('Content-type: image/png');
        header('Content-Disposition: inline; filename='.str_replace('/','',md5($filename.$thumb_size.$thumb_size_x.$thumb_size_y.$quality).'.png'));
        @imagepng($thumbnail,$cache_file);
        imagepng($thumbnail); 
        break;

    case 1: # GIF 
        if (function_exists('imagegif'))
        {
            header('Content-type: image/gif');
            header('Content-Disposition: inline; filename='.str_replace('/','',md5($filename.$thumb_size.$thumb_size_x.$thumb_size_y.$quality).'.gif'));
            @imagegif($thumbnail,$cache_file);
            imagegif($thumbnail);  
        } else {
            header('Content-type: image/jpeg');
            header('Content-Disposition: inline; filename='.str_replace('/','',md5($filename.$thumb_size.$thumb_size_x.$thumb_size_y.$quality).'.jpg'));
            @imagejpeg($thumbnail,$cache_file);
            imagejpeg($thumbnail); 
        }
        break;
}

//clear memory
imagedestroy ($image);
imagedestroy ($thumbnail);

<img src="thumb.php?file=displacementmap_painting.jpg&sizex=100&sizey=100">

GD it is, so run Banderson's code above and tell use what you see.

Showing You have the GD Library installed

Be sure the path to your images are correct and that the images actually exist. What is happening with the code? Are you getting just a broken image error?

If you have GD installed locally and this code is working properly on another server, I would think it could possibly be a path problem. Be sure it is not.

Query at line 4, for local host, mine uses \

$site_config['absolute_uri']=str_replace('///','//',str_replace('thumb.php?'.$_SERVER['QUERY_STRING'],'',$_SERVER['REQUEST_URI']));
$site_config['path_thumbnail']=$site_config['absolute_uri'].'/cache/images/';   //where to cache thumbnails on the server, relative to the DOCUMENT_ROOT
Then how it is working on server ?

the server does not run windows
files on server are specified from the root /folder/folder/folder/file
files on the local pc OS are specified from the root \folder\folder\folder\file

havent you ever noticed that uri and local files are different?
I did not state that this is the error, when running wamp, the wamp server changes the \ to / for the localhost, on my pc, but not for file:///c:\otherfolder\otherfolder\file

then how i can run on my local server ?