Yes, there's a limit to the number of files inside them. The limit is 120. Which means, you can have 120 pz2, pp2, cr2, hr2, etc. in each folder PLUS 120 .rsr and .png files for each item - for a grand total of 360 items in each folder. Which is how I ended up with 4 different clothing folders for vicky PLUS shoes and accessories folders. Kate (who seems to learn a LOT of stuff about Poser the hard way g)