I have the same problem, with 0.3.21-beta for Mac OS X.  I haven't been able to send, even 0.01, because "This transaction is over the size limit".

Really?  A penny is so huge that it requires a 100% transaction fee?  This isn't a bug?  I thought bitcoin could be sent for free, but it might take longer (lower priority)?

I will upgrade, but I would still like to know how it's supposed to work.  Thanks.