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Yes...I had tried saving it as a .JPG and the file size was 19k for this particular file. Better than the 1,592K for the 24-bit I had. You're right...it's a lot of work but it looks like it may be the only way for me to go. Unfortunately, the .BMP extension is hardcoded throughout this code as well...yikes. Not exactly the answer I was looking for :-( but I guess we don't always get the answers we hope for...lol. Thanks for your input.
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You could try saving them at a lower color depth instead of going to JPG, if you don't want to change the code.

This error often appears when you're on the edge of running out of memory, btw.

>L<