I have got this same issue of out of memory but on an image that is only 1px by 54px (190Bytes). Now I have a top of the range laptop with 1gb ram so I cant see any reason that this would actually be a memory issue. I resized two other images (larger size) no probs and then this one and any subsequent ones will not resize. I have nothing else running so memory should not be an issue. Sounds like you have a bug after all! All i'm doing is opening the image, and then trying to resize it by 50%. I have no error log to send you as none was produced.