>We are storing a sql statement and passing it between to prg files. It is bombing out and we think that we might be trying to pass a string that is too large...or it could be something else altogether. Has anyone else run into such a limit?

If you think that is the problem, try passing by reference.
instead of

MyFunc( lcSqlStatement )

try

MyFunc ( @lcSqlStatement )

This will return just the pointer (memory address) to where the string actually is and shouldn't be a memory limit problem.