I suspect the problem is actually with the php memory limit, not the upload size limit. Try increasing your memory limit to 256mb and I suspect you will be fine. Granted keep in mind image size makes a difference in memory needs too... (borrowed from zenphoto site)
VGA Image, 640 x 480 pixels => needs ~4.1 MB Memory
SVGA Image, 800 x 600 pixels => needs ~4.8 MB Memory
1 MP Image, 1024 x 798 pixels => needs ~6.3 MB Memory
2 MP Image, 1600 x 1200 pixels => needs ~11.7 MB Memory
6 MP Image, 2816 x 2112 pixels => needs ~22.6 MB Memory
8.2 MP Image, 3571 x 2302 pixels => needs ~41.7 MB Memory
The image you uploaded would need around 50MB of memory alone to process, at just over 4000px wide and almost 3000px high.
Also you should use http://tips-scripts.com/php_ini
(copies server default php.ini and applies your modifications), a php.ini file with only those two lines may break more than it will fix in some cases...
Hope that helps.