A recent visitor to the WordPress Support Forum asked if is possible to increase the length of excerpts when using the the_excerpt tag. Yes it is. The default value is set to 55. The file that controls this is located at wp-includes/formatting.php. Look for excerpt_length and adjust accordingly.
Having said that altering core files is never a good idea unless you know what you're doing. A better option to achieve the result is to insert the following in to your theme's function.php file (if your theme doesn't have one then create it),
remove_filter('get_the_excerpt', 'wp_trim_excerpt');
add_filter('get_the_excerpt', 'custom_trim_excerpt');
function custom_trim_excerpt($text) { // Fakes an excerpt if needed
global $post;
if ( '' == $text ) {
$text = get_the_content('');
$text = apply_filters('the_content', $text);
$text = str_replace(']]>', ']]>', $text);
$text = strip_tags($text);
$excerpt_length = x;
$words = explode(' ', $text, $excerpt_length + 1);
if (count($words) > $excerpt_length) {
array_pop($words);
array_push($words, '...');
$text = implode(' ', $words);
}
}
return $text;
}
An even easier method is to simply use a plugin from the WordPress Plugin Directory. I haven't carefully looked through the selection for a plugin that would do this but I'm sure there is at least one.

Where exactly do you insert the text? I'v just tried inserting it before the last function. Makes no difference.
Hi James,
What exactly is the problem you are having?