I am not having problems uploading or replacing the photo when I edit it. This is only giving me a problem when I am trying to Rotate or Flip in the edit mode. I went into my settings and changed my max image height and width to 2500 and 2500 and that did the job. I would like to have kept them closer to the original size though.
If I switch to Imagemagick then I get this error.
/usr/bin/X11/mogrify -rotate 270 /home/mysite/public_html/gallery/data/549/IMG_1094.jpg