To fix this you'll need to change your 'upload_max_filesize' in your php.ini file. If you're on a shared hosting account (most likely) kindly ask your host to do this for you. It's often set at 2mb, you might want it up to 10 or 20.
Alternatively, you can create a php.ini file in your public_html directory and that will override the servers php configuration file.
That's how to fix -
There was an error uploading this file to the server.