Still cannot upload images: "HttpUnhandledException"

Cannot upload images to my gallery, keep getting the error below, it is very frustrating! Appears once 'post-processing' bar reaches 100%.

An error occurred at 8/31/2013 9:11:19 AM as follows

Exception of type 'System.Web.HttpUnhandledException' was thrown.

at System.Web.UI.Page.HandleError(Exception e)
at System.Web.UI.Page.ProcessRequestMain(Boolean includeStagesBeforeAsyncPoint, Boolean includeStagesAfterAsyncPoint)
at System.Web.UI.Page.ProcessRequest(Boolean includeStagesBeforeAsyncPoint, Boolean includeStagesAfterAsyncPoint)
at System.Web.UI.Page.ProcessRequest()
at System.Web.UI.Page.ProcessRequestWithNoAssert(HttpContext context)
at System.Web.UI.Page.ProcessRequest(HttpContext context)
at ASP.member_gallery_item_aspx.ProcessRequest(HttpContext context)
at System.Web.HttpApplication.CallHandlerExecutionStep.System.Web.HttpApplication.IExecutionStep.Execute()
at System.Web.HttpApplication.ExecuteStep(IExecutionStep step, Boolean& completedSynchronously)

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Out of memory.

at System.Drawing.Graphics.CheckErrorStatus(Int32 status)
at System.Drawing.Graphics.DrawImage(Image image, Int32 x, Int32 y, Int32 width, Int32 height)
at Orchidflux.Rubberslug.ImageProcessor.Resize(Image imgToResize, Size size) in E:\_Work\Library\Orchidflux\Rubberslug\ImageProcess.cs:line 81
at Orchidflux.Rubberslug.ImageProcessor.Resize(String source, String target, Size size, Int64 quality) in E:\_Work\Library\Orchidflux\Rubberslug\ImageProcess.cs:line 45
at member_gallery_item.SaveToS3(String path, Size originalDimensions, String key, FileSize size)
at member_gallery_item.SaveToS3(String path, Size originalDimensions, String key)
at member_gallery_item.UploadComplete(Object sender, UploadStatusEventArgs e)
at Krystalware.SlickUpload.Controls.UploadConnector.OnLoad(EventArgs e)
at System.Web.UI.Control.LoadRecursive()
at System.Web.UI.Control.LoadRecursive()
at System.Web.UI.Control.LoadRecursive()
at System.Web.UI.Control.LoadRecursive()
at System.Web.UI.Control.LoadRecursive()
at System.Web.UI.Control.LoadRecursive()
at System.Web.UI.Control.LoadRecursive()
at System.Web.UI.Page.ProcessRequestMain(Boolean includeStagesBeforeAsyncPoint, Boolean includeStagesAfterAsyncPoint)

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