We can't tell for sure what the upper limit is. It depends on your environment, what browser you're using and how much free memory you have.
The current version of Silverlight buffers the data to upload completely into memory before sending it to the server. It's extremely frustrating. We're trying to find a way to bypass that design limitation and perform true streaming in future versions.
In your case, it seems 150MB is the limit. Changing the request size limit on your server won't have any effect since the data never actually reaches the server, the failure point is at the local (client) level.
We will work on improving failure detection so that you're at least given an exception when Silverlight stops accepting data.
André
Software Developer and Tech Support
Xceed Software Inc.