Image Manager / Album unable to create thumbnails

[ITistic]

I am having a problem with the Album / Image Manager modules and certain JPG images. These images are directly from a digital camera and have not been altered in anyway. When I upload them neither of these modules are able to generate a thumbnail image automatically. I am able to open these JPG files in many other software packages and do not have any problems. Here is a link to one of the  JPGs I am having this problem with:

http://ksrwheels.itistic.com/uploads/im ... C01443.jpg

Any help you could provide would be greatly appreciated..

[ITistic]

I've resolved this problem by increasing the php.ini memory_limit from 16M to 32M. Should I set it even higher? What are the drawbacks to this?