I have contacted my Hosting Provider. They have resolved the problem. But i still couldnt find a valid way to increase the size of the uploader.
But in the end this worked like a charm
Creating a php.ini inside wp_admin with these values
safe_mode = off
memory_limit = 32M
upload_max_filesize = 32M
post_max_size = 32M
file_uploads = On
Thanks to all for your precious replies.
Cheers ??