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FAIL: Uploading Mail Merge Template to MS CRM 2011 (Roll up 14)

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I have tried bringing in an email template into CRM via the Attached of an XML file from the "Mail Merge" templates area... constantly get the "File is too large" Error, when the file is 700K only. Also keep getting the "Failed to the mail merge template to MS Dynamics CRM" message when trying to upload the template via the create template via MS Word (From Outlook for CRM)... Just far to frustrated with this, as this should be simple. Verified ny security role as Marketing Manager and assigned all rights to create, modify, delete, upload mail merge templates... all assigned my self customizer, admin and CEO roles... so what gives?

Any ideas... would be greatly appreciated


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