Image uploads erroring out with media upload into the media library

We have a number of installs, and we have noticed in the past couple of upgrades to wordpress that image uploads are failing over and over. This is on multisites and single wp installations. While we can certainly ftp, our clients using the blogs don't always know how to do an image that way.

Here is what the error looks like:

Most common we get: Fatal error: Allowed memory size of 33554432 bytes exhausted (tried to allocate 7680 bytes) in /home/username/public_html/wp-admin/includes/template.php on line 1826

Apache/2.2.22 (Unix) mod_ssl/2.2.22 OpenSSL/1.0.0-fips mod_auth_passthrough/2.1 mod_bwlimited/1.4 FrontPage/5.0.2.2635 Server at (mydomain).com Port 80

We use dedicated servers and vps. In all cases we are using WHM/cpanel and have full access. We have checked the ini files, etc. We have adjusted to the max. All to no avail.

I saw one post somewhere else talking about the .htaccess file.

Of course I have a .htaccess file for each installation, and they typically look like this:

# BEGIN WordPress
<IfModule mod_rewrite.c>
RewriteEngine On
RewriteBase /
RewriteRule ^index\.php$ - [L]
RewriteCond %{REQUEST_FILENAME} !-f
RewriteCond %{REQUEST_FILENAME} !-d
RewriteRule . /index.php [L]
</IfModule>

# END WordPress

FTP is not an issue. It is just the HTTP uploads in wordpress.

Anyone know a solution?

Thanks,

John