Just checking, if this works I’ll update this post with what I changed to get rid of the error message regarding memory (WP 2.5)

Update: it worked!

Here’s what I did: open .htaccess
Insert this line:

php_value memory_limit 64M

Save file.

I tried changing the wp-config.php file (like all the support forums at wordpress.org say to do) and that just hosed the blog. The .htaccess fix (suggested by my web host) seems to have done the trick. More testing to do, but I’m optimistic.