From that FAQ entry:
Finally, note that the player software has a 4096-byte limit. This means that if your config.ini is longer than 4096 bytes, it will not be read correctly (actually it will only read the bytes after the 4096 mark). So keep your config.ini as small as possible.
There's no such limitation. The only limit is that individual lines can be no longer than 1,023 bytes.

Peter