No Metadata for Jpeg's in DB.

Hi,

I have a really strange one that may not be a wordPress issue at all but I don’t know where to go… and maybe one of you smart people out there can help.

I recently upgraded my wordpress site to version 3.9.2 at about the same time I noticed that whenever I uploaded images via the image uploader the images come back with a HTTP error right before “Crunching” however the image would still upload. In the thumbnail it would display a 1px X 1px image in the thumbnail area. I also could not edit the image via the image editor screen. I had a look into the MYSQL DB and noticed no metadata being populated against the images. As the site is still under development I decided to reinstall both wordpress and mysql db and totally start over (I did not restore from backup or anything, I started completely from scratch). To my amazement this did not fix my issue, every time I uploaded an image to the image store it would come back with an HTTP error exactly as it had before.
This is where it gets really strange, I noticed that my Logo that was a PNG type graphic was displaying correctly so I had a bit of a play around and noticed this is only effecting JPG files and BMP files. If I convert the exact same image into a PNG (which is much larger of an image) it will upload and correctly set the thumbnail as well as set the metadata In the DB. Anyway any thoughts or ideas on this would be much appreciated.