Ok... now I have the working pil package available for download. You can download it from here (http://www.saunalahti.fi/~tsharju/pymaemo). After installing it you will have some scripts in your /var/lib/install/usr/bin directory. I'd recommend adding this directory to your PATH so the scripts are easier to use. You can do that by typing...

To make things easier you can make a file called .profile and place it in the /home/user folder. After reboot, that line will then be automatically executed.

After this you'll be able to use the Python Imaging Library for modifying images. For example you can resize an image by typing...

You can also do lots of other things with pil. Go here for more details. Check especially the part III of the document to see what you can do from the terminal.