I have recently been using a jQuery plugin called imgAreaSelect, which allows you to crop images. I wanted to use it with my PHP site so that thumbnails could be cropped and created.
GD Library is a PHP library that allows manipulation of images, in particular it can create new images. It may need to be installed on some servers, but I found it already installed on my host and on MAMP (my local server). Combining this with imgAreaSelect read more