Yes, I have seen it too.
There is a standard limit on the number of character a SMS message can contain and it is 160 characters(when each character is represented using 7 bits).When the length of the SMS exceeds 160 characters your message is received on the other emulator in parts. The encoding gets affected also, I think and therefore we see garbled characters.
Also, note that when the number of characters in your SMS exceeds 160x3 characters your message is converted to MMS automatically, on the emulator. If you are trying to send it from code, send it as an MMS; MMS can handle longer messages SMS only 160. Alternatively, you can also send data as Multipart SMSes.