Matrices used to have a limit but with latest DBPro patches, there is no limit. However having anything over 100 by 100 tiles is not a good idea and things start slowing down. Best bet is to have a smaller matrix and use the shift matrix commands to give impression of larger landscape.
My alien compo entry has a matrix 79 * 79 tiles with each tile 100 * 100 units. The game level is however 300 * 300 tiles. The idea being to detect when player crosses a tile border, shift the matrix one tile and rebuild the matrix edge from a level array. In the array I store the matrix texture numbers, heights and normals.
I have no idea how matrices are stored in memory. Does it matter?
Boo!