well this error here tells me you did not raise the PHP memory to 40m as it is still set to 32M.
Quote:
Fatal error: Allowed memory size of 33554432 bytes exhausted (tried to allocate 10000 bytes) in /var/www/web1/html/galleri/image-inc.php on line 115
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If you have imagemagick on the server I would suggest you use that instead of gd2. Memory issues are a constant issue using GD2 with big files or alot of files.