@buzz
You are correct.
Quote from the changes.txt file:
1.254 (4.3.2006)
- The limits mentioned in the 1.245 notes were wrong, sorry. The actual
partition size limit of SFS 1.x is 128 GB, no matter which blocksize
you are using. Changed the checks to the actual limits. You can
continue to use too large partitions, but you may get "disk full"
errors (instead of a trashed partition) even if there is still free
space on the partition.
Edit:
for 'SFS2' partitions the limit is 1 TB, but it can be more depending on the blocksize, with 32KB/Block it's 64 TB.