Maximum Path Length Limitation

Just encountered a very surprising limit to file path lengths on Windows 7.

http://www.codinghorror.com/blog/2006/11/filesystem-paths-how-long-is-too-long.html

260 characters absolute max for a filepath?

Has anyone else had problems with this? I find it quite odd and it seems to me a potential problem in asset management since you never know how long the names of various assets and publishes can get. The NTFS filesystem supports a length of 32k characters, but the explorer utility throws warnings when it encounters anything above 260 (which was the FAT32 limit back in the days)

I run into this constantly ( from the user side of things ):
Especially when extracting from long named zip or rarfiles etc.
Or:
Simply use WinZIP to compress a folder with path names exceeding the limit. Winzip will not tell you that it silently skips all files sitting under a path deeper than that limit. Your resulting Zip will be okay but you will have missing files. That happens without warnings ! It’s of course sloppy Winzip coding, other tools like Winrar or 7Zip at least throw a warning ( or might even work with longer path names )