Install Joomla template

I have installed joomla 1.6.1 on a godaddy linux hosting account and when attempting to ad the zip file to the extension manager I get the following error; "There was an error uploading this file to the server." I think it has to do with the size of the template file being uploaded but I dont know how to edit what needs to be edited to have it install correctly. Also please install the source files as well if u can. Shouldn't take more than 2 hours I imagine if u know what ur doing. Thank you, Barry