Your change may well be working. Does your application need a lot of memory - the stack trace shows some Image related features.
I'm guessing that the error either happens right away, with a large file, or happens later after several requests.
If the error happens right away, then you can increase memory still further, or investigate find out why so much memory is needed for one file.
If the error happens after several requests, then you could have a memory leak - where objects are not being reclaimed by the garbage collector. Using a tool like JProfiler can help you monitor how much memory is being used by your VM and can help you see what is using that memory and why objects are not being reclaimed by the garbage collector.