Yes, try to keep it under 2mb. Although to be honest the reason for the limit is 'cost effectivness'. Assuming we actually work out a formula for profits and sales etc.
Here's another question - i currently have the Window Control extension included because in the menu screens you can choose to enlarge the screen from 320x240 to 640x480 (not increasing the frame size in MMF2, just magnifying the game window to double) - is this allowed under the "No graphics extensions or resizing, rotating or ink effects allowed" rule?
Then place the object in your game frame. From the event editor, you can adjust the window size by right clicking in any square in the Window Control object column, selecting "Resize" then the "X size..." and "Y size..." options.
I've added this in a menu so you can scroll through the options "320x240", "640x480", "960x720". The window size will change to the relevant size depending on which of these are selected. Now, because i have a heading for my window, for some reason the window size is slightly "squashed", ruining the image somewhat (see the screenies i've so far added and check out the dither-textures to see what i mean - they don't look right in those pics). I have overcome this by actually changing the screen sizes in those above options to "336x276", "655x515" and "974x754" respectively.
On another note, you can also move the screen around with this object, though i haven't bothered with this option but i can see how usefull it could be. Hope this hels!
Marko you may find that your 'fix' only works for YOUR computer (and some others). On different versions of windows or windows with different visual themes to the one you have, the title bar will be a different size and so will effect the window size and distort your gfx again. I think the only way around it is with a completely custom title bar/menu at the top, not using the crappy built in one.
if i'm wrong about this please someone correct me... it has always bothered me.