Picture uploading Questions - Max limit for picture size vs file size? And which button?

First, why does the button on the bottom let you upload larger pictures sizes than the one on top?
Why aren't both the same?



Here are my current picture settings.

What I'd like to do is set the image size displayed in the page to be a max of 1500x1500.
But I want it so that when you click the image to open in a new window, it's going to be a max size of say, 3600x3600 or maybe a max file size of 4MB.
Is that possible?

I want inline pictures to not take up the...

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