In the project status area there is an Update Notes field.  I believe the field is capped at a length of 3500 characters.  Does anyone know if it is possible to change that field length?

 It is not possible to change the field length for Update Notes.  We switched all long text fields over to a cap of 3500 - I believe it was because that is what is exportable to Excel without truncation.  The assumption is you want more text space?

Actually, I'm seeing a 1,000 byte "per day" limit as reported in Daptiv support case #36854. 

Here's how we hit the limit:  we have a Production Support project for a client with a task named "General Support".  There are about 8 support folks assigned to the task.  They receive calls throughout the day and log their time to the task accordingly along with any pertinent notes.  As soon as the update notes hit 1000 bytes for the day - BOOM! 

It's not easy to correct either - as per Daptiv support case #36376.  Once they hit the limit for the day they can't enter any more notes.

I would like to extend the length to around 4500 characters.  Although your reasoning for the cap makes sense.  We have only had one situation that I am aware of in the 3 years we have used the tool of someone exceeding the 3500 character length.