Some people have been having a problem with Max file size not working. (Remember your php.ini file will over-ride your setting IF IT IS LOWER than your Wordpress setting)
Here is a fix:
Go to
/wp-admin/upload-functions.php
Around Line 211 AFTER
$file = wp_handle_upload($_FILES['image'], $overrides);
ADD these TWO lines:
if( isset( $file[ 'error' ] ) == false )
$file[ 'error' ] = apply_filters( "check_uploaded_file", $file[ 'error' ] );
I think this is a genuine bug (and a fix :-) but no guarantees. If you apply this fix and days later you come across the Statue of Liberty half buried in the sand don't blame me.
Macgruder