I know 'pre-crash', that pictures over 2.0 were flagged as 'too big'. Since the crash, I have to crop my pictures down to 1.3 in order to have them post. Then when they come up, they are HUGE in my own screen..
Next time I post, I'll pay attention better and post my results-but usually, if its too big-the screen is just the blank light blue and the bottom of the window displays 'Done'......I don't know if that helps, but that's my .03
*EDIT*
I just tried posting a pic........I had to keep re-sizing until I got to 1.0 before it would take the upload!!