Is it possible to create images with PHP (as opposed to simply linking to them via HTML) and if so, where should I go first to learn about such a thing?
Yes this is possible. I believe there are multiple libraries to accomplish this. The most widely used is probably ImageMagick which is actually not PHP specific but comes with appropriate bindings.
See also in the PHP documentation.
For decent tutorials on image generation using PHP:
GD - http://devzone.zend.com/node/view/id/1269
ImageMagick - http://www.sitepoint.com/article/dynamic-images-imagemagick
MagickWand is pretty good for that as well, and pretty powerful.
http://www.bitweaver.org/doc/magickwand/index.html
This snippet will take an image, wrie the 'rose' in Vera, or whatever fonts are available, and flush the image to the browser.
$drawing_wand=NewDrawingWand(); DrawSetFont($drawing_wand,"/usr/share/fonts/bitstream-vera/Vera.ttf"); DrawSetFontSize($drawing_wand,20); DrawSetGravity($drawing_wand,MW_CenterGravity); $pixel_wand=NewPixelWand(); PixelSetColor($pixel_wand,"white"); DrawSetFillColor($drawing_wand,$pixel_wand); if (MagickAnnotateImage($magick_wand,$drawing_wand,0,0,0,"Rose") != 0) { header("Content-type: image/jpeg"); MagickEchoImageBlob( $magick_wand ); } else { echo MagickGetExceptionString($magick_wand); }