Out of memory error but phpinfo says we should be fine

I have seen several people with the out of memory error when trying to generate thumbnails of images in owncloud. They are told to increase their memory_limit. I have adjust memory_limit=1024M (my machine is 4GB of FREE memory). phpinfo() reflect this. However, I am still getting the error:

PHP Fatal error: Out of memory (allocated 6553600) (tried to allocate 6400 bytes) in /home1/gergltdc/public_html/owncloud/lib/private/legacy/image.php on line 515

phpinfo() in my owncloud directory reflects memory_limit=1024M. I looked at the source of /lib/private/legacy/image.php and the error is on imagecreatefromjpeg() which makes sense. So, I decided to make the smallest test script I can think of to reproduce the error. That test script runs fine. So, there must be something in owncloud that is causing this issue. Thoughts?

<?php

$path = 'http://avigilon.com/assets/Uploads/29MP-large.jpg';
$image = imagecreatefromjpeg($path);
var_dump($image);

?>

I am running ownCloud 9.1.3 on a hostmonster server. Installed this morning from the setup php script.

Maybe try to contact the support of your hoster about this issue. As you can see at the [1] query ownCloud is not enforcing any other memory_limits within the code.

[1]