One last experiment:
I installed xampp on my win7 machine all settings are at the defaults.
Created a test site and installed WP and SP. Nothing else, not even any SP plugins.
Created a folder called files in the local test site and copied the 128MB text file to it.
Created one SP forum.
I then tried creating posts with links to large files in them.
Linking to the 128MB file on the local machine works.
Linking to the 128MB file on my web host fails.
Linking to a large test file I found on another site also fails. ( http://download.thinkbroadband.com/100MB.zip )
The interesting thing here is that running from localhost the error is no longer an out of memory one. It’s a timeout error.
Fatal error: Maximum execution time of 120 seconds exceeded in C:xampphtdocsmike-warren_netwp-includesclass-http.php on line 906
Line 906 is $strResponse = stream_get_contents( $handle ); which looks like it’s trying to load the file to me.
Given this new information and the fact that I now have a local setup I can play with, is there anything you want me to try?