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Try setting your php settings to this to allow uploads over 2mb and to also help with blank pages as thats a server error telling me your php is shutting down. You can also try installing and using imagemagick instead of gd2 as thats known to have issues with large images.
memory_limit 48M
max_execution_time 0
post_maxsize 8M
max_upload_filesize 8M
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