Upload image with module image causes connection interrupted

While trying to upload anything more than ~60kb i get this error.

Connection Interrupted
The document contains no data.
The network link was interrupted while negotiating a connection. Please try again.

These are my options in php.ini

file_uploads On On
upload_max_filesize 2M 2M
upload_tmp_dir no value no value
post_max_size 8M 8M

Any help? I've tried it on two different installations and i get the same issue.