text field limit

I have a form where i have cells B9:I21 merged together. the alignment is to wrap text and the format is a text field. all's fine until i reach the third line of text. it is all displayed as #######. is there a limit of text allowed in a text box???? how can i go around this?

i put in the following text but as soon as i put another space it swiches to #'s.:

Q1: DEP RPTS WERE NOT ON FILE AND HAD TO BE PRINTED. ONCE PRINTED TWO OUT OF 3 DID NOT AGREE B/C DIR TRANSPOSED AMT ON ONE AND DEP A PMT ALMOST A MTH AFTER POSTED.
Q3B: INCORRECT AMTS POSTED TO FAMILIES PER CHK DETAIL AND APPLIED TO INCORRECT DATES.
Q6:

i know that there is a display limit of 1024, but the length of the above text is 254 so i cant figure out what's goign on.

Thanks in advance