Disclaimer: TFS is not my VCS of choice. I use it because that is what the client site where I'm working uses.
I'd heard about it before but only just ran into it myself today. I'm referring to the TFS character limit which I've come to learn is actually a Windows character limit that is a holdover from older APIs. NTFS actually supports filenames in excess of 32000 characters yet windows APIs, and thus any tool built on top of those APIs, still has a limit of 260 characters. Apparently Microsoft doesn't intend to fix it (or didn't in 2011). If that's not technical debt then I don't know what is.
They have started addressing it to some degree in TFS 2012 with support for up to 400 character paths but on the server only.
