If it says the file is too large, the image is too large in consumption. This can be rectified by making it smaller, or decreasing quality. My recommendation is that you use an image hosting website such as Photobucket or Imageshack to host your stuff, and then simply use the Insert Image button to insert the image. I have COmcast for an ISP, they give 250MB of web storage space. I use this to host all of my images, your ISP may have hosting as well.