Perhaps the plugin has become out dated with the latest wordpress releases. I am having the same problem. Nothing initializes.
First of all. Images from a camera are usually very large (not web friendly). Most digital cameras have anywhere from 2mb-15mb images.
If you use an ftp uploader you will be able to get the images online. But otherwise you will be restricted to your memory allocation of the server.
You can try the plugin http://ww.wp.xz.cn/extend/plugins/memory-bump/ and see if that does anything to raise your memory limit.
Hi Ofer and MacItaly. Did you guys come up with a solution for this? I have the same error when trying to save a translation.