It looks like you didn't change the PHP settings correctly. The message tells you that only 32MB of memory was allowed, when it should have been 128MB. Or, maybe there was another memory setting that needed to be specified? Is your php.ini file in the public_html directory, as the suPHP_ConfigPath command indicates?
Make yourself a PHP script with the following:
<?php phpinfo(); ?>Run it from your browser before and after creating the php.ini file, or changing anything in it. You should see some of the settings change in the report. If they don't, you did something incorrectly.
You can try the suPHP_ConfigPath without the <IfModule> tags before and after it. Normally it's enabled for all Apache/Linux servers. You're not running on a Windows server (IIS, Windows Server), are you?