The 65,000 is a limit of VFP9 COPY TO xls command and Excel itself before Excel 2007.
You can try Export To Excel Causes COM Error Message #1292509 instead

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>COPY TO (lcReportFile) FIELDS &lcFieldList TYPE XL5
>lnRecordsCopied = _TALLY
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>Is there a limit to the number of records that can be copied over? I'm seeing a difference between the source table and the result xl5...
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>Is _TALLY not valid ?
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>After copying 130,000 records, _TALLY shows 65,000...
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>I don't see any other table activity in-between to change the _TALLY .