When I encountered this problem, after doing some research on the net, I determined the problem was most likely caused by the WordPress Maximum File Upload Size, which was set to 8mb by default. The Newspaper theme I wanted to upload was 11 mb.
To increase the default WordPress Maximum file upload size, I added the following lines to .htaccess
php_value upload_max_filesize 64M
php_value post_max_size 64M
php_value max_execution_time 300
php_value max_input_time 300
This resolved the problem. This method was among several possible solutions I found at the following link:
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