Well, I would advise resolving the issue with your host – as otherwise you may continually get problems with it. If you’d prefer to use smaller images to get past your hosting restriction then that’s up to you.
It was brought to my attention that gif’s have an issue with the way the theme and WP communicate. Once I changed the format of gif to jpg everything is working fine. Good thing I only had 4 gifs out of 300+ files right?
Would be interested to know what the gif issue is?.. Haven’t had anyone else with an issue, but if there is one with the theme then would definitely like to know about it!