Yup. The fix I'm providing is merely a temporary solution but not a definitive solution. To resize the dimensions dynamically and to proportion + rescale the file size is not an easy mod from the way I'm looking at it.
I haven't checked out the latest image resize hack (for vB 3.6) but all the others prior to it does take a toll on server load since it changes the file properties after it's loaded. I could be wrong but I think attachments and software like PhotoPost resizes and rescales the images on the upload. That would be ideal in your case.
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