Problems Uploading Media in 3.3.2…

As of yesterday evening, all editors for my site have received the following message shown below when uploading media. No new plugins have been installed and I’ve increased the upload size for the already spacious 20MB to 32MB. As I stated, no changed to the server or installation/coding were made before this issue. Please help.

Warning: copy(/home/content/65/7467465/html/home/karencivil/karencivil.com/2012/06/ying-yang-twin-arrested-dui.gif) [function.copy]: failed to open stream: File too large in /home/content/65/7467465/html/wp-admin/includes/file.php on line 348

Warning: Cannot modify header information – headers already sent by (output started at /home/content/65/7467465/html/wp-admin/includes/file.php:348) in /home/content/65/7467465/html/wp-includes/pluggable.php on line 866