This is not likely to be a limit on the size of the library since libraries can be 100,000 items and even larger.
It looks like there is a particular file in your library that leads to this problem. We would love to be able to get this file so that we can fix this issue. Here is how you can find the file:
- Stop sharing
- Enable logging (see instructions at http://forums.tversity.com/index.php?p=/discussion/357/some-guidelines-for-reporting-problems-and-bugs-properly)
- Restart the sharing
- Do a full refresh
- When the crash occurs send us the log file
BTW, the last file processed in the log (search for the last line that includes the word "processing) is the one causing the crash. If you move it some unshared location your problem should go away. If you also send it to us we can try to fix the problem so you can use that file again.