I have come up against this problem a few times at inopportune moments:
- trying to work on open source Java projects with deep paths
- Storing deep Fitnesse wiki trees in source control
- An error trying to use Bazaar to import my source control tree
Why does this limit exist?
Why hasn't it been removed yet?
How do you cope with the path limit? ... and no, switching to linux or Mac OS X is not a valid answer to this question ;)