When developing my first course (only four slides), I tried using alot of the available options (popups/testing/external url....). When I added audio the published zip file went from 200kb to 7.5Mb. I went back and compressed the audio files to get it that small.....is this normal and what size zip file can I expect in the future? [:confused:] We are implementing Moodle and it limits me to 2Mb. Is it fair to assume, I will have to increase the Moodle limits?

Yes, as I've experiences recently, sound files can make a small course become very large very quickly.

Compressing the audio files and using the .mp3 format instead of .wav seems to have helped solve my problem.

There are two more tools in CourseLab you can do the "clean-up" your course before publishing to help reduce the file size.
1) Use the Tools>Image Compression feature. The manual explains quite nicely what this feature does.

2) Use Module>Delete Unused Files. This will remove all the files from your course that are not being used. In the development stage I often try different objects or images until I find what works. This can leave behind a lot of unused files in your course that are taking up a lot of space.