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Increase File Attachment Size Limit in Trac

sudo vi /etc/trac/trac.ini

Updated the attachment max size line to this:

[attachment]
max_size = 5242880

This made it 5 MB (I just multiplied their number of bytes, which equaled 250Kb, by 20).

Reference

http://trac.edgewall.org/wiki/0.11/TracIni