8 x 1024KB = 8196KB (MegaBytes to KiloBytes)
8196KB x 8 = 65568Kb (KiloBytes to Kilobits)
Bitrate Allowance (Quality).
65568Kb / (length of file in seconds) = average bitrate in Kb /s.
For (almost) CD quality Stereo Audio (mp3) you need 128Kb/s.
For semi decent Video (divx/mpeg4) you need about 700Kb/s at 640x480 (ish).
That should give you about 80 seconds at decent quality = 1min 20secs.
You can drop the audio quality to mono & 1/2 the sampling rate, which will drop that 128kb/s down to 32Kb/s (22Khz Mono) and still be reasonable.
The big winner though is video .. Drop the resolution down to 320 * 240 and drop the bitrate of the video down to 300Kb/s and it will be very good.
198 Seconds of alright quality film = 3mins 20Seconds.
Generally a two hour film needs 1GB/1024MB for decent quality.
A twenty minute film needs 170MB.
At lower quality, you'll still need 450MBish & 80MBish.
I guess that 8MB allowance is way too small, even at lowish quality, even for your shortest films.
Better find a new site to host that video