activeCollab does not set any limit on the size of files that you can upload, but limitations are enforced by your web server. The "Max total size of files you can upload..." message in your edition of activeCollab (below the File and Attachment upload forms) displays the current limit enforced by the web server you're using:

To increase the max upload size, open php.ini file and change values of upload_max_filesize and post_max_size directives to value that suits your needs. For example:

upload_max_filesize = 64M
post_max_size = 64M

Save php.ini and restart your web server. If you don't have access to php.ini, contact your system administrator or hosting provider to increase these values for you and point out that they need to be applied to the /public folder.

Apache Note

Apache has a LimitRequestBody configuration directive. It restricts the size of all POST data regardless of the web scripting language in use. You might need to update this value, too.