About a month after sending the application in, I get the whole application returned because the photo didn't meet requirements. So I went to get the photo in a convenience store and I then compared both photos and they were near enough identical and that one ended up getting approved.
I googled about photo rejections and for PR cards it happens more than you think and the theory is that they can't keep with the renewals so they throw in a photo rejection which gives the application a 'legitimate' delay. It wouldn't surprise me if that was true.
How much easier this situation would be if the photo could have been done online.