Brucey, your calculation was bits, divide by 8 to get the bytes, which is about 18.6 MB. Still quite large, but not impossible.
Possibly, but he also underestimated the size, because the original poster is not considering powers of two. An image of that size would be resized to 4096x4096. Assuming the videocard in question even supports textures of that size, it would use up 64MB.
My guess is the videocard in question is either a 64MB card and didn't have enough ram for it or doesn't support textures of 4096x4096 regardless of ram.