I've had this problem with Gallery Remote for years ;) Problem appears when I'm adding pictures to an album and selecting each one to crop it. The Preview window shows the image but not the whole image. It's slightly cropped. I can create a normal crop box and it will crop just fine.
I thought it only happened for vertical images so I have been working around it by rotating the picture to horizontal, cropping it, then rotating to vertical (crop is preserved when rotating) but today I noticed that even horizontal images are cropped in the preview window but it is less noticeable.
I've used various XP machines with various versions of Java and Gallery Remote builds. Currently at Java 6.01 and GR 1.5.1b34. While doing some digging today I've ruled out ImageMagick as the problem. I turned on debug and checked the large thumbs that IM creates for the preview window and those are NOT cropped.
It appears that the Preview window is not displaying the entire image. I just tried to resize the Preview window in various ways and came to a conclusion that it will properly show the entire image if the image does not fall beyond the top and bottom borders. Meaning that I need to have empty space on top and bottom of the picture in the Preview window for it to show me the entire picture.
It is not very noticeable especially in horizontal pics so I'm not surprised that I've found no reference to this problem anywhere.