Right, but like I said... my test image is only 640kb and it fails every time. A similar file that is much smaller in dimension size works fine.
FWIW, I also have it set in admin to resize images that have dimensions outside the acceptable range.
My admin's going to check some more settings later but I just wanted to point out that none of the files I'm uploading individually are even 1mb in size. The bulk upload exceeds the 2mb point, I'm sure but...