If you try to upload a 1.1 meg file what error do you get?
What you are experiencing is php server setting issues. If that 1.1meg upload takes longer than 30 seconds your toast.
If you email me a url and admin login I can look at things and make suggestions based on your php setup
Also your host may also be limiting your LimitBodyRequest variable to a certain size in php.conf or apache setup but based on you recieving the page you say I suspect it is a PHP timeout or PHP memory consumption issue.
Try in pp-inc.php to add this code in bold and test with the 1.1 meg file
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