General help

Usually you would need to increase value of post_max_size and upload_max_filesize in php.ini file(s) - for example in Xampp

[path to xampp folder]/php/php.ini
and:
[path to xampp folder]/apache/bin/php.ini

and do a couple of tricks, read for example http://docs.moodle.org/en/Administration_FAQ#How_do_the_limits_on_uploaded_files_work.3F

BUT on a local box you may as well copy the files to correct subfolder of your moodledata folder (or otherwise transfer large files to correct place).

If you upload a small test file to your course and check the course id from address bar (let's say it is 3) you should find the corresponding subfolder (3) inside your moodledata folder and if you place files inside that subfolder you will see them in course files and can make links to those files...

You could upload the videos via FTP or copy them directly to the server. I had an issue recently where I needed to place a 100MB+ document in a Moodle database module. I had to upload a smaller file to make then link and then FTP the correct file to the server.