MacOS X has no pre set limits (or at least none you are likely to hit), but the firewire bridge built into the drive sled may not see things over 127GB.
I've got a 250 Gig drive in an external firewire/USB 2.0 case and both my G4 (MDD) and G5 see it with no problem at all. I haven't plugged it into my Powerbook yet, but I don't think there would be any issues with that.
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