The error tells you almost exactly what is needed - 'tried to allocate 75 bytes'. That means 134217728 was only 75 bytes short. One can go beyond limits if on a shared system. If remotely hosted on a shared system check with hosting provider as to limits on PHP. If remotely hosted on a dedicated (not shared system) there still might be limits so increase 128M to something slightly higher ... say 132M.
PHP scripts might also need increases in the following (add 30 seconds):
max_input_time
max_execution_time
and one more:
max_input_vars = 5000
Uhhh, while you're at it, might consider taking the 1.9.7 to the highest/most secure 1.9.19. Believe that is also the recommended first step when beginning migration to version 2.
'spirit of sharing', Ken