Image Uploader Plupload Client Side Resize Not Working

Thankyou both for the reply.
I had seen that link that jayarjo sent, I wasnt to keen to delve in to the javascript and php.
I know that you can set these settings in the WPlupload plugin, so I installed that and it also was not working.

Anyway after a lot of buggering around to try and get it sorted. I found out that my Godaddy server had PHP in safe_mode which I had seen on forums had caused problems with WP in the past. I turned that off, but that didnt fix it.

Next I found out that PHP sessions were not working on the server, I realised this because another pluugin that had stopped working (Magpie Pro and Product Importer Deluxe). I have to thank Neil at Magpie Pro http://geegood.com for tracking down that issue and his excellent customer support.

That lead me to this test script to increment a number on the page:
http://wordpress.org/support/topic/fastcgi-session-problem-plesk-922-and-php-538?replies=7

It proved sessions were not working although on PHPinfo they said they were enabled.

Then I found that it is a write access problem for PHP on the Plesk server and that I had to change/set a new path using session_save_path(‘/somedirectory’); for the sessions directory like this page describes:
http://support.godaddy.com/library/warning-unknown-failed-to-write-session-data-files/
http://wordpress.org/support/topic/fast-secure-contact-form-3

I changed the test script is began to work.
I added the line to the wp-config file and sure enough. WPlupload and my other plugins began to work like a charm. I decided to leave in WPlupload as it enabled me to set the maximum size and quality of resize. The default/new media uploader, I think was doing some resizing client side but still uploaded the large image files in full because there isnt a setting to tell it otherwise in the UI. I assume that is something that will come in a near future release of WP.

Thanks for all your help. I hope this helps someone out.