as seen on nightly2, and with the latest trunk/sakai code:
when editing a simple test resource's properties in the Resources tool, if you click on the "Display to non-members (publicly viewable)" check box and attempt to Update,
you get the bogus alert:
Alert: The upload size limit of 20MB has been exceeded.
and cannot save.
Of course, you can even just edit properties and attempt to save and get this same bogus alert.
This seems to be only for the simple text - an image resource does not show this problem.