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)?
it prevents transaction spam. also, if a transaction has too little or no fee, other nodes may not accept it, causing 0/unconfirmed forever