I saved my signatures in html format, but whenever a new message is to be created the comment is displayed stating your file is too large

There is a 4 kb size limit on a signature file.
Did you use Word to create the signature? Word puts so much bloat in HTML that it is useless for creating a signature file. Did you put a picture in the signature? The picture should be referenced by a link and not included in the signature file.
You can compose a signature with WinMail and Notepad. Create your signature in an WinMail mail composition window. View, check Source Edit. Click on the Source tab. Highlight and copy the source code. Paste the code into Notepad. Save As "signature.htm". Change signature to your chose of a name. Use signature.htm for your signature file. Ronald Sommer
"Ankur Rajpal" <Ankur Rajpal discussions.microsoft.com> :I saved my signatures in html format, but whenever a new message is to be : created the comment is displayed stating your file is too large