You're all looking at this problem from the wrong angle.
Stuff wordpress an it's limits, what you are display is html code and there are very few limits to that.
I had a 24meg movie file I wanted to display, wordpress wouldn't let me , so what I did was
1) upload file via your FTP loader. I uploaded mine to an Area that wasn't involved with wordpress.
2) The FTP program Filezilla will tell you what the url address is for the file you've uploaded. If you can't work it out go to your browser
type in your domain name and keep working your way down until you find it( If this forum allowed pics I'd show you) eg http://www.domainname.com/sparefilesfolder/uploadedfile.avi
3) Now go and create a post or a page so we can embed it
Place the following code into post and adjust the URl/src to reflect your uploaded file
<object width="160" height="144"
<param name="src" value="sample.mov">
<param name="autoplay" value="true">
<param name="controller" value="false">
<embed src="domainname.com/sparefilesfolder/uploadedfile.avi" width="160" height="144"
It will work!!
I can't believe the people that wrote wordpress have been so stupid as to not increase the limit to something more sensible or tell people how to work round it.
By doing the above the object WILL NOT be in your media library. this solution gets round it by having a direct link.