Stack overflow is unlikely to do with images, though it could be to do with code that handles images (eg a preloader).
A stack overflow generally arises from a non-terminating recursive call. In other words, a function that calls itself but with no conditional test to prevent it calling again and again for ever (or such a test exists but it is failing).
What can be the reason for that? Is it related to the images I'm using in my site?
Im am also gettting this error combined with horrific graphics and text display on a perfetly fine monitor. Every other program shows up great in 1024/768 high color but any web based display including IE or other html type pages looks just awful.