MG 1.1 A server error ocurred

Unfortunately, without a specific error, it will be difficult to say.

Does anything get logged in your Admin CP Server Error logs? Or is there anything in your PHP / web server logs?

Does this happen during upload or when you click on "Save Media"?

If you upload the same images here, does it work?
 
I've seen plenty of these errors and they were usually related by having the php upload max size set to a (low) default value.
But yeah as Chris said, looking at your system logs will tell you more.
 
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