CSV Import tool not batching?

I get the error below when trying to use the CSV Import tool with a 58 Megabyte file.

Mar 31, 2010 6:52:37 PM org.apache.commons.httpclient.HttpMethodBase getResponseBody

WARNING: Going to buffer response body of large or unknown size.

Using getResponseBodyAsStream instead is recommended.

Error!!! Sorry, you cannot upload files that exceed 3MB in size.

You could Zip the file and try uploading the contents or use our Upload Tool if you are using CSV File.

Please contact support@zohoreports.com in case you need help in uploading the file contents.

Exception in thread "main" ServerException (HttpStatusCode 400 Error Code: 7205 , URI: ,

Action: IMPORT, Message: Sorry, you cannot upload files that exceed 3MB in size

. You could Zip the file and try uploading the contents or use our Upload Tool if you are using CSV File.

Please contact support@zohoreports.com in case you need help in uploading the file contents.)

The error message is pretty clear - it can't handle files bigger than 3MB. But isn't the LINES_TO_SEND option supposed to chunk the file, for large incremental uploads?