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Default Excel file size limitation

I've got someone trying to work with a 400MB Excel spreadsheet using Office
2007. Excel keeps crashing when trying to modify and then save the file.
Outlook goes into Not Responding mode. The file itself doesn't contain all
that much data, however, it does contain many high-res images cropped to fit
into a cell. The pictures have been compressed, however the file size
doesn't change all that much.

I was under the impression that the PC itself perhaps didn't have enough RAM
memory. Tried working with the file from a PC having 4GB or RAM - same
result. I then tried doing the same from a machine with a clean install of
Windows 7 with 8GB of RAM - Excel still hangs when trying to save the file.

I know there are limits regarding the # of rows/columns in a spreadsheet,
but my question her is, is there some sort of limitation in terms of file
size for Excel.

Thanks for the help!
 
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