Drupal Lite 7: How Files are Stored in Your Drupal Lite Site
Each Drupal Lite site will have its own unique storage for files that are uploaded. You can upload nearly any type of file. Once a file has been uploaded to your site the first time, you can then use the Add Media option available on the editor toolbar to reuse the file in additional locations rather than uploading multiple copies of the same file.
Files are uploaded to your site when you are creating or editing content. For example, if you are adding a profile picture on a Biography page, adding a downloadable PDF document to a news article, or adding an inline image to a body field.
Important Note About Movie Files
Although you can upload movie files to your Drupal Lite site, it is highly discouraged. Drupal Lite is not a streaming media service, and your visitors will not have a good experience with movies that are uploaded to your site. It is far better to upload your movies to YouTube first, and then embed them on the page. See Embedding YouTube Videos.