SQL Server Express 2008R2 - restore db failing due to size limit, but file is under 10GB
The database size limit is for the total size of all database files, both data file(s) and log file(s). So you've got a 7GB problem, not a 0.1GB problem.

You could try to shrink the log file down to near-zero, but even then it is going to be very close (it also may expand as soon as you try to query the database).