In the options, the fee is per kb, so if you send a big transaction with the fee you put in the end fee will be larger (the .0003 fee, in this case).
Adding more to the wallet won't help because you're just making the transaction bigger.
To fix this, set the fee at .0001 in the options and try again; wait long enough for the coins to 'age'; or start the client with the option -nofee (IIRC).
Thank you for your help. I thought the bigger the amount the better the chance of an "easy" transaction.
Two more questions:
a) how long does it take for the coins to "age" (in days or confirmations)
b) can you do the -nofee option with the GUI client ?
I am using MacOSX snow leopard with the latest client
I know how to do the -rescan getting into the app. Will this work the same way just with ./bitcoin -nofee instead of ./bitcoin -rescan?
A: It depends - the smaller the transactions you received the lower priority (or spammier) the transaction will be seen as, so you have to wait longer. It shouldn't be too long unless you got a bunch of .00000001 transactions. I'm not sure of the exact math but it's pretty straightforward, as I recall, just a little algebra to figure it out.
B: It's currently not an option in the GUI, but it should work exactly as the -rescan option, again if -nofee is the correct command, I am fairly certain it is.
Keep in mind it'll take a bit longer for your transaction to confirm if you don't include a fee, but if you don't send a fee, send more coins. Part of the priority of a TX is how large it is.