PHP's just running out of memory! Processing images of that size requires approximately 50MB of memory to even load and reprocess, and that's a lot. I'd recommend either raising that PHP memory limit, or resizing the images before upload, because that's really huge...
http://gallery.jeremyisaaclee.com/HDR/image/640/court.jpg?debug
That shows the error with the image. Your memory limit is currently about 20MB, it will need to be tripled or more (60-70MB minimum) to process images of the size you want. Read more here:
http://www.zenphoto.org/trac/wiki/ZenphotoFAQ#WhydoesZenphotomakemyservercrashwhileprocessingimages
The reason the full-sized image works is because it's a direct link to the original, and doesn't go through any processing, as you might have guessed.
This is a problem with any PHP-based image gallery software. In future versions, you might be able to use ImageMagick as an option to get around these memory limits. Keep checking for updates, that should be in 1.1 or 1.2.