I'm no Microsoft engineer, but the file size limit (if you're talking about .AVI files) is a Windows limitation, not a software issue.
I used to run Windows 98SE and I would go nuts when editing DV and then having to create multiple files because of the 4GIG limit.
I recently upgraded my system to Win 2000 and reformatted both my master and two slave drives to NTFS. Under Win 2000 (Win NT) there is no limit on .AVI files...
That is correct, the file size limit is Windows-imposed. There is a new version of Video Factory in the works. When there is more information available, I will post it here.
What Ted has stated is essentially correct. However he should have said that ONLY using NT or 2000 Pro with your hard drives formatted to NTFS will you not encounter the file size limitation.