Scenario:
1 briefcase folder shared between 10 people. They use it to share scanned customer documents. Each customer has a sub-folder with the customers files in it. At this time there are easily 500+ folders.

Problem:
Logged in to the user with the folder or a user to whom it has been shared, this folder will stall when listing the folder names.

Workaround:

Firefox and IE8 both give the option to stop or continue, doing 6-10 times will get a full file list and all works. Choose stop and none of the folders are accessible.

Question:
This leaves me wondering if there is a soft limit to how many folders can be in a briefcase and not time out. Would sorting them in to 26 alpha folders be a better option? The mailbox itself is only 1600mb, but this is almost entirely contained within that one folder. Is there a practical limit for size or number of documents in an individual folder?