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To increase the memory limit and upload size limit, add the following to your .htaccess file:

# increase memory limit
php_value memory_limit 64M

# increase upload limit for files
php_value upload_max_filesize 16M
php_value post_max_size 16M

Change the numbers to whatever you need. The upload_max_filesize setting is the maximum size per file and the post_max_size setting is the total upload size (it is possible to upload multiple files at once).

About the memory_limit setting: for processing large images using GD for example, you probably need 32M or more. The same story goes if you get empty pages occasionally.

Use a PHP file containing <?php phpinfo(); ?> to check your current settings.