No, it would mean on-the-fly photo editing built into the server, and I've absolutely no idea how on earth I can write code that will edit photos.
Regarding it taking so long. Just to go www.download.com or search google for photo resizing programs. I've even included one (And a document i made) in the help section.
With regards to adding text, you can use any photo editing program to do this, save the image, then upload it. You could resize it whilst in the process
And, about the error - it's supposed to bloody say that! Nobody should be getting code errors with no explaination, the correct thing to happen is that you get an error saying that the file you uploaded is too big.