[Plugin: NextGEN Gallery] Yet another Thumbnail problem

I recently installed NGG and the features are fantastic – exactly what I need but I have a problem when generating thumbnails from larger images.

When using the gallery to upload I recieve an error for each image when the thumbnail is being created (each time the bar moves along a % it then reports a failure (for example – ID 167: A failure occurred).

Hovering over the More button gives no detail as to what has actually failed. The thumb icons are not displayed or created in the thumbs folder but when i click the red X it does load the original image.

my images are fairly large (2-3mb each) so i changed to PHP5 to increase my PHP memory as i was previously getting memory errors but as that is fixed im not sure what is causing this 2nd problem.

I do get thumbs to generate on smaller images but I dont want to go through every image I have and resize.

Any ideas on how i can get a little more detail from the error or is this something anyone has seen before?

Let me know if you need any specific details and i shall provide. Any help is appriciated.