It seems that NoDo introduced a 65MB limit/bug (note that this doesn't happen with the emulator, the latest emulator changelog even lists an update from 65 to 225MB xap limit size...).
Some non HTC phones seems to be not affected but so far all the people with HTC phones i know have this problem after NoDo update.
There is a way to install bigger xaps if you have file system access (you can easily get it with the recently released public beta of Windows Phone Device Manager).
For example i used this method to install Puzzle Quest 2 (222MB xap):
- open the xap file with winzip or similar
- extract the file WMAppManifest.xml and open it with a text editor (notepad would do)
- search for the ProductID value, in my case the string was: ProductID="{3b2dbe12-42fe-df11-9264-00237de2db9e}"
so the ID is 3b2dbe12-42fe-df11-9264-00237de2db9e
- search for the big content (wma files, video, etc), extract it and then delete it from the xap file.
in this case i extracted and then removed this whole folder: Puzzle Quest 2 - v1000.xap\Content\Assets\Image\
- exit the zip file manager you used and you'll see the xap is now much smaller
- deploy the xap as usual
- access the file system of your phone and go in this folder: \Applications\Install
- search for the folder named as your ProductID, in this case 3b2dbe12-42fe-df11-9264-00237de2db9e
- open the folder and the Install folder you'll find in it ( for example in this case: \Applications\Install\3B2DBE12-42FE-DF11-9264-00237DE2DB9E\Install )
- copy the content you extracted from the original xap in the appropriated path
- disconnect your phone and run the game
- enjoy

P.S. sorry for the rushed nature of those instructions but i'm at the office, later maybe i'll write a better tutorial.