Yup that's about the size I'm getting on my Omnia, but on my LG Dare I could receive and transfer over a full size file via MMS. Try this, set your camera to take a 640 x 480 sized image, then send that image to your own phone via MMS (or send it to your email, again via MMS). You should easily be able to receive that image back at a 640 x 480 resolution and it should not resize it to the size image you posted as a sample.
Heading home from work now will check back on here in about an hour. Thanks for replying and trying to help, it's greatly appreciated!