Howdy asu619 and zhoy,
Thank you for reporting the packaging size issue that you have been seeing. I have just loaded up the 4.7.2 version of UE4 and saw that the packaging size was only 366 KB? I packaged the First Person template project with no starter content.
Would you be able to test this issue on the 4.7.2 version of UE4? Also, would you be using a source or binary version of UE4? Any additional information would be greatly appreciated.
Thanks and have a great day!