Problems Uploading a File

I have a script that uploads a JPG and then resizes it. it works fine
with files up to abouot 1.6M, but when i try a file that is about 4M i
get the following error message:

Fatal error: Out of memory (allocated 33292288) (tried to allocate
15552 bytes) in path-to/includes/file-upload-resize.inc.php on line 83

were line 83 is:
$source_image = imagecreatefromjpeg($source_image_URL);
(which seems to fail because the upload fails, but it works with
smaller file sizes)

looking at the php.ini of my hosting service i gatherer the following:
max_execution_time 50000 50000
memory_limit 40M 40M
upload_max_filesize 20M 20M

which seems to be enough for waht i want. i also tried changing the
max execution time:
ini_set('max_execution_time', 100000);

the form has a big enough max file size:
<input type="hidden" name="MAX_FILE_SIZE" value="8000000" />

how can i make this work providing that my server seems to have big
enough limits?
Am I overlooking some parameter?

thank you very much,

NN

.

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