Having the same issue, I am uploading photos via Google + and they are definitely counting against the 1gb size limit on Picasa. I have only 3mb of space left and all 1021 mb of photos were uploaded from Google +. I tried scaling down larger pictures to be lower than the 2048x2048 resolution, but if they are larger than 3mb...Server Rejected. I hope a solution is found soon. Thanks in advance.