the limit is 255 because 9+36+84+126 = 255. the 256th character (which is really the first character) is zero.
using the combinatoric formula Ck(n) = n/k = n!/(k!(n-k)!) to find the number of non-repeating combinations for 1,2,3,4,5,6,7,8 digits you get this:
of digits: 1 2 3 4 5 6 7 8
of combinations: 9 36 84 126 126 84 36 9
it is unnecessary to include 5-8 digits since it's a symmetric group of M. in other words, a 4 element generator is a group operation for an octet and its group action has 255 permutations.
interestingly, it only requires 3 digits to "count" to 1000 (after 789 the rest of the numbers are repetitions of previous combinations).