1. The default password is set by the supplier, and could be anything. Not neccesarily the maximum. Generally much smaller and easy to remember.
nihil, I was talking about the size of the default password, not the password itself?

2. Yes certain things can happen if you exceed the set number, and some OS's can be changed, but I still don't see what will happen if you exceed the set number(concerning a cracking program)? You have to know what the number is(and change it if necessary) to take full advantage of it.

If your OS will only accept 7 characters I would you format the HDD and install a proper one (OS)
And yes, the OS's that I use do accept higher numbers, and are proper ones?