See RFC 2822, section 2.1.1 to start.
There are two limits that this
standard places on the number of
characters in a line. Each line of
characters MUST be no more than 998
characters, and SHOULD be no more than
78 characters, excluding the CRLF.
As the RFC states later, you can work around this limit (not that you should) by folding the subject over multiple lines.
Each header field is logically a
single line of characters comprising
the field name, the colon, and the
field body. For convenience however,
and to deal with the 998/78 character
limitations per line, the field body
portion of a header field can be split
into a multiple line representation;
this is called "folding". The general
rule is that wherever this standard
allows for folding white space (not
simply WSP characters), a CRLF may be
inserted before any WSP. For
example, the header field:
Subject: This is a test
can be represented as:
Subject: This
is a test
The recommendation for no more than 78 characters in the subject header sounds reasonable. No one wants to scroll to see the entire subject line, and something important might get cut off on the right.