I have the same problem: once updated at NGG 1.1 thumbnails creation fails.
I have an error of “memory exceeded”, because seems that now NGG needs around 34+ Mb of ram to use GD libraries and I have only 32 Mb allowed (that before were enough).
Unfortunately I cannot change hoster and neither ask for an increase of memory, so if this problem persist, I must, with regret, pass to another gallery.
I hope that someone can solve because NGG is a great gallery, I love it.
Thanks in advance,
