an error in Scene.c - scn.Layers disallowd all layer bits to be set.
made image_billboard.py rotate all images to be verticle for more efficient packing, added the option not to pack resulting images into 1.
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Render Billboard Script
This can texture a simple billboard mesh from any number of selected objects.
Renders objects in the selection to quad faces on the active mesh.
Usage
* Light your model or enable the shadless flag so it is visible
* Make a low poly mesh out of quads with 90d corners. (this will be you billboard mesh)
* Select the model and any lamps that light it
* Select the billboard mesh so that it is active
* Run this script, Adjust settings such as image size or oversampling.
* Select a place to save the PNG image.
* Once the script has finished running return to the 3d view by pressing Shift+F5
* To see the newly applied textures change the drawtype to 'Textured Solid'