Photocrati Gallery Memory limit READ CAREFULLY

This is not the Max file upload size issue or a php.ini fix..
I get the following error for what seems to be files that may be around 4MB in size or larger:

Fatal error: Allowed memory size of 67108864 bytes exhausted

I know that my php server settings are fine because I can run a phpinfo script and get the settings below also the files upload fine under the standard WP uploader. It seems to be related to photocrati theme I even tried adding the line to the wp-config.php as suggested by another forum but it had no effect on the Photocrati theme.

define('WP_MEMORY_LIMIT', '256M');

I suspect it will be something similar to the fix for the upload file size limit where you actually had to modify the upload.php file within the theme itself as it had a setting overriding the server settings making it remain at 2mb but where, what file, and code. Hope somebody has delt with this.

My server settings for php are as follows

memory_limit 256M
post_max_size 64M
upload_max_filesize 64M