i am having the same problem. i have bumped my php memory_limit up to 16, then to 32; deleted almost all of my plugins and am still having this problem. i am running 2.0.3
also, i think my webhost (powweb) just upgraded php.
any thoughts?
thanks in advance
edit: problem solved. i checked my error logs and found that hello.php was causing errors. i deleted it and now seem to be working.