As long as the bootstrap loader in the MBR can reach the partition
offset specified in the partition table (so it can load the boot sector
of that partition) then each an every partition could be 128GB in size
(if you had a really huge hard disk). With a 400GB Barracuda drive, you
could have two 137GB partitions with a remaining 126GB partition (these
are all decimal values). That's with basic volumes. Windows 2000/XP
supports dynamic volumes (but I don't recall that the OS partition can
be included) which will let you far exceed the 128GB addressing
limitation but I suspect that is not something you want to get into
right now.
PartitionMagic will warn you if you create a partition at a cylinder
count greater than 1023. I haven't had a problem with a partition at
the end of the disk and of ignoring this PM warning because my BIOS
supports LBA mode which performs geometry translation so there is always
a max of 1024 cylinders (0 to 1023, inclusive). If you ever turned off
LBA mode in the BIOS then a partition past cylinder 1023 would be
unreached by the standard bootstrap loader in the MBR (although 3rd
party boot managers might not have this limitation). However, I would
think turning off LBA mode would have other consequences since you are
changing the geometry translation used for the drive (i.e., you might
have to delete all partitions and recreate them to build a new partition
table). I've never turned off LBA mode (since I always want the full
size available for my hard disk).
http://www.pcguide.com/ref/hdd/bios/modesLBA-c.html