I love Phelps because he is a dick, not despite it. My favorite quote about Phelps was in some magazine (possibly even thrasher) doing a review of Crocker-Amazon park in SF. It was something like "This park was designed in part by Jake Phelps, which proves he's an even bigger dick than everybody thought he was" (the park sucks)
I don't think the photo is real beef at all. Remember, in his epicly later'd, he said that if you ever really hate somebody, don't talk shit, just pretend they don't exist. He's not pretending they don't exist, and wouldn't be seen in frame of a transworld mag even if it was on fire. Its just Phelps being his cartoonish self.