If you both use Outloook Express you can configure it to split any file into "chunks" of say 500k (or whatever size you determin). This will get around any server restriction limits. The 500k "chunk" files will be sent individually and then reconfigured into one large file on the recipients PC.
If you don't use Outlook Express then you'll have to split the file as mammak says
In view of the very large file sizes, I would suggest either Yahoo, (or MSN Messenger) is the best and simplest way. You would have to arrange to be on line at the same time, and both have, or sign up, for Yahoo or MSN Passport, accounts, which are free.
I have done this with friends in the USA without problem. Bear in mind that upload speeds, even with broadband, are slower than download speeds.
I would doubt that any mailboxes would allow such large files, even if you split them. 700+Mb is much too big.
I'd use ICQ, MSN limits your upload/download speeds, and can drop connections occasionally when transfering files.
You may want to split the file anyway, I would that way if your transfer fails for any reason you won't lose the whole file. Sending many smaler files can be a pain, but better than sending 698Mb and then failing. I think also ICQ has the option to reasume dropped up/downloads, it's poped up for me occasionally but only seems to ask if you'd like to resume when it feels like it.