Patti,
Is there a setting that can alter this behavior and make it store the
attachment in the Files section and then the outgoing email would
include a link to the file?
Not on a group-wide basis.
However each member has a control, in the Advanced Preferences section of their Subscription, for the maximum attachment size to deliver to that member. This can be "Unlimited" (the default), zero (meaning no attachments), or one of a selection of intermediate size limits.
If the member is not sent the attachment, he/she is sent a link to it instead.
On a group-wide basis, the group can Allow, Strip, or Bounce attachments.
"Allow" means that the attachment is both passed through to members that receive individual messages, and stored on site for the benefit of those that read the group via its Messages pages (and Digest). There is not a separate "Attachments" section nor are they stored with the Groups files; but each message has links to its attachments.
"Strip" means that the message body is sent through, but the attachment is not, nor is it stored on the site.
"Bounce" means to reject the message altogether.
Shal
Shal Farley