There may be a problem with capacities greater than 8 gigs but in the end you will probably have to test it yourself as it seems that results vary. I have read a post from at least one person using a larger drive with his, but I can't find it now. I also don't know what revision of PAR he was using.
Look here for some information about boards and chip revisions.
BBOAH ParLet me know if you can conform anything as I have one of these along with several TBC IV's and would be curious.
Jeff