File path limits - 255 or less?

I know Long File Name support is supposed to be 255 characters, but back in Windows 95, it really wasn't : http://support.microsoft.com/kb/148754

I am researching NTFS and tried creating a folder with a 255 character name (including the path etc).  The best I can do in Windows 7 is 247 (including c:\ in the count).  212 is the best I get trying the same thing on a FAT32 USB drive plugged into the Windows 7 machine.  What are the real limitations?  If I create a 255 character folder in another OS and copy it to windows 7, will it get truncated or stay?

Thanks for any insight.  Ive already searched the forum, but couldn't find anything answering my question.

K

PS This was close, but still no answer and to what I really get when I create the long path. http://msdn.microsoft.com/en-us/library/aa365247%28VS.85%29.aspx