Thanks Ruben and Gizmo. I made the change you suggested and am still having the same problem.
Interestingly enough, all the images that existed before the upgrade display just fine, it is just when trying to upload new images.
Regarding image size, the image I am testing with is less than 500k so this is not contributing to the issue above. I changed the max image size in attachments to 10MB, but gallery upload it is still showing 500k max. Is there another place to change this?