Increasing PHP file upload limits... capabilities is another matter
Upping PHP's maximum file size upload limit:
Your problem: the file upload settings page on your Drupal site (if you've found it) is telling you silly PHP won't let people upload big files, to wit:
Your PHP settings limit the maximum file size per upload to 200 MB.
There's two places that this has to change in your php.ini file; this can also be set in your settings.php PHP initialization variables.
We at Agaric like the sledgehammer - nay, mechanized battering ram - approach to fixing niggling little problems, so here's what we're going to make those sections look like:
; Maximum allowed size for uploaded files.
upload_max_filesize = 200M
and
; Maximum size of POST data that PHP will accept.
post_max_size = 400M
Here's what you have to do in command line shell commands, which is sort of like poetry...
locate php.ini
vi /etc/php5/apache2/php.ini
/upload
icursor keys cursor keys...
00
esc
/post_maxcursor keys cursor keys... backspace
400
esc
shift-ZZ apache2ctl restartNow go to admin/settings/uploads ...
Your PHP settings limit the maximum file size per upload to 200 MB.
That's more like it!
The Agaric way is not recommended for mortals, sane people, or even deities or insane people with weak stomachs.
Agaric already covered this subject on this page but here we cut to the chase!

You will probably (a) not want to use such insanely large limits and (b) want to make sure you also have memory settings higher than the default, also in php.ini. The increases here are comparatively modest. Note also that upload size isn't the same as the resource limits here, but timeout in particular may need to be increased a lot for larger uploads.