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Yes if you are processing large amounts of large files without a doubt that is best.
When using GD2 you can increase PHP memory to 72M and in upload options set your max image sizes to no more than 1024 or 1500 and see if that helps. There are alot of topics on this if you search for "ini_set"
Using Imagemagick though is recommended since it would not be prone to PHP memory issues like GD2.
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