on my gentoo system, the disk quota parameters in the openvz configuration file is:
DISKSPACE="1048576:1153024"
DISKINODES="200000:220000"
commonly used unit would be 'Byte' or 'MB'. if it is 'Byte', the above numbers would be ridiculously small, but if it is 'MB', it would be way too large...
Someone please think of the kilobytes! :-)
According to OpenVZ wiki,
So, your 1048576 quota would be around one gigabyte, which sounds pretty reasonable to me.
As Janne Pikkarainen said, DISKSPACE is usually expressed in 1024 bytes blocks (KiB). Just to make it clear: DISKINODES are not measured in bytes, inodes are countable objects.