Current version of tar ( presuming GNU tar ) is 1.14 since July 2004, and it doesn't have a size limit.
Below is a table of formats that GNU tar supports, and their limitations.
Code:
Format UID File Size Path Name Devn
gnu 1.8e19 Unlimited Unlimited 63
oldgnu 1.8e19 Unlimited Unlimited 63
v7 2097151 8GB 99 n/a
ustar 2097151 8GB 256 21
posix Unlimited Unlimited Unlimited Unlimited
So perhaps it is an old version of tar?