Im not going to argue nor call you liar, but the other day I recorded a 20 sec video and it was 1.6 MB....I have a Storm 2 and I know the colors and light affect the size, but it was also recorded in highest possible resolution and best quality...
I think the maximum attachment size its around 3MB and in my personal experience thats around 35 sec of video...
You can try recording in Low Res mode (though I know it looks like crap)
As far as I know there is no way to edit video on the device itself and the "Device Memory Limit" has nothing to do with it, I strongly recommend you to set it at the maximum possible I think its 15MB or 12MB I'm not sure... this will allow you to save more files in the device itself (from Docs to Go, or IM, etc) besides having a media card...
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