Gravity forms not saving

I have an issue in saving gravity form, but for some reason its not saving on my test site
http://sitename/wp-admin/admin-ajax.php

br />
<b>Fatal error</b>: Allowed memory size of 33554432 bytes exhausted (tried to allocate 491520 bytes) in <b>/var/www/xxx/sitename/wp-content/plugins/gravityforms/form_detail.php</b> on line <b>754</b>

php.ini settings
max_execution_time = 30 ; Maximum execution time of each script, in seconds
max_input_time = 60 ; Maximum amount of time each script may spend parsing request data
;max_input_nesting_level = 64 ; Maximum input variable nesting level
memory_limit = 32M ; Maximum amount of memory a script may consume (32MB)

The plugin activated right
can u tell if anything has to be seen in db/disk to resolve the issue

After installing gravity forms and trying to save my first simple form, I have a similar error"

Fatal error: Allowed memory size of 33554432 bytes exhausted (tried to allocate 122880 bytes) in /data/21/2/65/135/2065787/user/2264635/htdocs/sacsalsanews/ssn/wp-includes/class-simplepie.php on line 3743

The above shows up in 3 sections of the dashboard home page. WordPress Blog, Incoming Links, and Plugins.

Does this mean that the available PHP memory on my hosting server needs to be increased? If so what number would you recommend for the increase?