I was having the same problem. I was getting message not sent error or it would just say sending for hours.
The problem seems to be the auto resizing the phone does. Changing the camera settings to 640 x 480 ended the problem for me.
I had a lot of issues after the update. Factory reset seems to have fixed them. I did lose data from the external SD. Don't know if it was caused by the update, factory reset, or other issues (have used a couple of different ROMs in the past).
Definitely backup first.