Trying this and its still saying after resize file is to big ??????
There is a remote possibility that the memory size could still be too big, but after thousands of images, I haven't see that happen yet with this resizing system.
I'm looking at the Resize Tool albums now and see a Harley-Davidson sign photo as the only one currently in your resize album. It was resized to 640x480 at 35k by the Resize Tool, well within the limit. I'll post it here in this reply as a File Manager attachment.
If you would have uploaded this image file, it would have worked fine. Perhaps you tried to upload a different file, or the original?