I figured it was time for me to contribute here. On dolphin 6 I was using the Dreamhost's wiki for increasing max_post_size and max_upload_size or whatever they are. This is not possible with D7. Then I found this:
http://www.activecollab.com/forums/topic/1507/
This workaround works beautifully. I've uploaded quite a few videos around 200 megs each with no problems. So if you are using dreamhost (especially on a shared server) try this method.