I am having the same problems, does not resize large images and gives me the standard error, image too big. Uploading to GAS3.51 works perfectly however, and am using GD2+ image editor settings....
If you have a chance to look into the other gallery popup issue I PM'd you admin logins for, perhaps you could take a peek at this as well then... This is a much-needed upgrade for the obvious reasons you stated when you released it. Keep up the great work, Geek.
PS: Tried commenting out the GD test parts already, didn't help.
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