Recently SharePoint forum user posted a query about SharePoint Document Library and List item limitation. When search technet founded that.
Each document library can store 2 million records, if you need very large document libraries by nesting folders.
Each List can store 2000 items however you can create nested folder to overcome this limitation.
Each List / Doc library can create 2000 folder. If you have beyond a thousand entries each folder Folder do not perform
For more details visit
http://blogs.msdn.com/sharepoint/archive/2007/07/25/scaling-large-lists.aspx
http://technet.microsoft.com/en-us/library/cc287743.aspx
http://stackoverflow.com/questions/34728/sharepoint-list-scalability
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