I'm surprised nobody has mentioned catch (FAK 3bananas) on this thread. Switched to that since my evernote stopped uploading images.
+1 Actually +2 as it happens on both Moto Droids I own, one stock one running CM6. I have at least 40mb of ram available, plenty of space on SD card. The image IS being created (can see it on evernote folder) but the app just can't seem to associate the newly created image with an upload. Can send logs if needed.