Nested folder problems in XP via Bootcamp

Question

I'm running Windows XP on my iMac via Bootcamp. It runs pretty much fine, with the exception of some fits over mouse/keyboard/DirectX drivers that I guess everyone is having.
However, it has one really huge annoying and flummoxing problem: if you have too many layers of subfolders, XP stops letting you drag files into the nested folder, won't open them if they're text or jpg, etc.
For example, suppose I create a "Beretta" subfolder at this level:
C:\Documents and Settings\Kate\My Documents\Games\Particular Game\Downloads\Weapons\Handheld Weapons\Guns\Handguns\Pistols\Beretta\
XP won't let me drag any files into the "Beretta" folder without an error message saying "Cannot move file RKELLY: The file name is not valid or [is] too long. Specify a different file name." I can drag the "Beretta" folder to another location further up the tree--or to my Desktop--and drop the RKELLY file in. If I check, the RKELLY file will open fine. I can even move the "Beretta" folder back to where I wanted it, under "Pistols." But then the RKELLY file inside the folder won't open. I can't delete it or do anything else to them, either, until I move them back to my Desktop or another less-nested folder. Instead, just get a "ding" sound.
Is there some sort of limit in XP I don't know about? Or it is a BootCamp issue? I can't figure out for the life of me why this would be happening, and it's a huge pain.

Answer 1

Long File Names and Maximum Folder Depth
Fat32
The FAT32 file specification from Microsoft does not specify a maximum directory depth. There is no official published NTFS file specification...however, under NTFS the directory depth is limited by the 255 character file name limit; directory depth cannot be more that.
The following is taken from Article No.: Q148754
Long file names are limited to 255 characters in Windows 95. However, the maximum path length in Windows 95 is 259 characters. The maximum path length represents the length of the file name, plus the number of characters used to represent the drive and folder where the file is located. For example, the path length for the file
C:\Windows\LongFileName.extension
is 33 characters, but the file name is only 22 characters.
Because the path length is limited to 259 characters, a long file name is limited to less than 255 characters if more than five characters are needed to represent the drive and folder where the file is located. If five characters or less are needed to represent the drive and folder where the file is located, the long file name is limited to 255 characters, even if the total path length is less than 259 characters. For example, if a file is located in the root folder of a drive, the long file name is still limited to 255 characters, even though 256 characters could be used before the maximum path length is reached.
NTFS
NTFS File name has a repeatable attribute for both long and short file names. The long name of the file can be up to 255 Unicode characters. The short name is the 8.3, case-insensitive name for the file. Additional names, or hard links, required by POSIX can be included as additional file name attributes.
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