Hey Edward,
I am sorry that delay of this reply,
The reason why you hitting this error is most likely because your upload_max_filesize is set to 2M. You will need to contact your hosting provider to get this value increased (30 ~ 50M Recommended)
Perhaps you can try download the launcher installer from
http://stackideas.com/dashboard (
http://screencast.com/t/xA8NR4wWzY9 ) then upload the installer zip file through in your Joomla installer and see how it goes?
If still can't able to update to latest version of Easyblog, can you provide us with your Joomla backend and FTP access so we can better have a look?