The unit for the propertyvalue has to be specified in bytes.
Examples:
To set the chunk size to 8040 bytes, you have to execute the command: stsadm -o setproperty -pn large-file-chunk-size -pv 8040
To set the chunk size to the default 5 MB, you have to execute the command: stsadm -o setproperty -pn large-file-chunk-size -pv 5242880
We have verified this on external installs and internal servers by looking at the UPDATETEXT commands sent over to the SQL Server. Also this value is applicable for upload.
May I please request the content team to re-write this article and make sure accurate information is reflected in this document to avoid any confusion at all.