rickwan,
A hard limit is the maximum i.e. fsize=2097151. A soft limit can be any size upto the maximum hard limit which the user him/herself can change. The hard limit can only be increased by root.
In practice you set soft limits on users to give them a starting point i.e. to not let them create files which are too big. But you also set a hard limit, then if the user requires they can increase their own soft limits up to the hard limit you set when you created the user.
Cheers
PSD
IBM Certified Specialist - AIX V4.3 Systems Support
IBM Certified Specialist - AIX V4 HACMP