class.upload.php is a powerful and mature PHP class to manage uploaded files, and manipulate images in many ways. The script is available under a GPL license.
more info about the class
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ini_set ( "memory_limit", "20M")
php_value memory_limit 20M
Try to raise your local memory to 20M, 32M or more.
You can add this in your script:
Or in a .htaccess file: