Hi Carl,
Since most courses that are put together using LORS are usually bigger than 2MBs and changing the paremeters for a particular file-storage instance of class/community is rather cumbersome, I bypassed the file-storage parameter set by default at 2MBs.
So, yes LORS uses file-storage, but it doesn't take into account the file size upload limitation for practical reasons.
The reasoning behind this is that the only person authorized by default to upload courses is the class/community administrator/professor. And since the aim is to make it for him/her as easy as possible, I thought it was a good idea to skip this limitation. I hope that's fine with the rest.
Ernie
