Importing MS Project 2010 XML file into RTC 4.0 hangs

We are trying to import a MS Project 2010 project saved as an XML file into RTC 4.0.  When we import the XML file, RTC 4.0 just hangs saying that it is 'verifying the input file'  The XML file is about 234MB.  Our MS Project 2010 project has 272 line items (tasks, milestones, etc...)

process to reproduce

1) Save an MS Project as an XML file.  File -> save etc... in MS Project.

2) From RTC 4.0 using the import feature.  Then select the XML file you saved from project

3) once you select the file, the status changes to 'verifying file' or something like that.

4) now it just hangs.

5) after an hour, the session will time out and the import will fail.

Are we missing a step?  What is the process to import an XML file?  Is there a configuration we need?  Do we need to add more memory to the RTC server?  BTW an IBM rep installed our RTC software and he verified all the hardware and software requirements.

Has anyone used this feature successfully?  If so could you post your process and issues you had to overcome and how you overcame it?

Thanks