OK everyone - thank you very much for your input.
It turns out that this is in fact a bug in that the photo album procs in the new version of photo-album do not refer to the ImageMagickPath parameter. They simply call identify and convert like this :
exec identify blah blah
They should call like this :
exec [ad_parameter ImageMagickPath]/identify blah blah
This may explains why Barry was able to work around it by setting 'PATH' in the caller's environment however I am not clear why the call didn't work on my system when /usr/X11R6/bin was in the PATH for all users!
It also clarifies the log error which was complaining that it couldn't find Image Magick after all. I could have tried setting the parameter until the cows came home - no code was referring to it!
I will post this as a bug but in case others follow the error to this thread, the procs affected are :
pa_make_new_image
pa_file_info
pa_load_images
pa_rotate
These are to be found in photo-album-procs.tcl - you will need to do a search and replace for all calls to either 'identify' or 'convert' (I think there are five changes to do).
Remember to re-start your server after modifying the procs files (or set package manager to reload the photo album package files after the modifications).
Regards
Richard