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I had the same issue today, but had previously sent and received picture messages without problem for the twenty-some days I have been using my phone.
Interestingly enough, it would successfully compress and attach pictures that I had taken before today, but nothing today even if I took a brand new photo right then. I played with settings on the camera and still no luck, but I did not try the lower resolution. I don't always take a photo just to send in a text message so I don't think that is a sufficient fix for me, they should fix this in an update before I have to take a cut in quality.
What worked was turning the phone off and then back on. After that I was able to send even the original photo from today that first gave me the problem. I hope that I do not have to encounter this again, I was dealing with plenty of glitches and work-arounds with my [2nd warranty replacement] Droid X prior to switching to the SIII, and as I've had the SIII for less than a month, I am not pleased to encounter something like this already.
