A continuing question that is raised every several months is what is the maximum number of contacts that can be in an distribution list for Exchange 2003. The answer is, it depends. If you only have very basic information, name and e-mail address, you can have over 1,000 contacts. If you start to have much more information per contact you are probably going to keep them around 25. Another limit is the 8 KB property size limit on the Exchange server. The server stores all links in one property store. Things such as the contact name length as well as entry ID (which is the type of e-mail address and the length of the message) can also factor in. For best results distribution lists should be between 50 and 70 contacts.

Also to note on Distribution Groups has a limit of much greater.

http://msexchangeteam.com/archive/2009/02/19/450729.aspx

Active Directory Limits

http://technet.microsoft.com/en-us/library/cc756101.aspx

Distribution List Link

http://support.microsoft.com/kb/238569

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