Fatal Memory Error when adding new site from Templates Blog Plugin

I am attempting to create a new site from "New Blog Templates" plugin. I have used the feature to create over 50 other blogs with no hitches. So it was working great and saving me a ton of time. Recently I have been getting the "Fatal error: Allowed memory size of 268435456 bytes exhausted (tried to allocate 80 bytes) in /home2/blogchry/public_html/wp-includes/wp-db.php on line 1400" everytime I try to create a site based on a template.

Though it does not appear to create a new site, it actually does, but the site is the default generic site not a site based on a template. I have increased my php.ini memory all the way to 512M. it was lower but I have had to increase it over time to stop getting the error. I am SURE there is another issue at play but I do not know how to find the culprit or what effects trying to find the problem will have on the existing blogs. Any help would be greatly appreciated.

Update: I just attempted to create a site without a template and I get the same error. . . So it is not specific to "Blog Template" plugin. I will try to search the forums as well. It seems like most the answers point to increasing the memory and I already have mine set at 512M (which is likely way to high).

My installed plugins include:
Add New Users
Admin Message
Blogs Directory
Google Analytics
Login Image
New Blog Templates
Page Links To
Rebranded Meta Widget
Remove WP Dashboard Widgets
Sitewide Privacy Options for WordPress Multisite
WPMU DEV Update Notifications
WP Super Cache

That is all of them.