There’s apparently a hack to remove the arbitrarily-imposed 1K limit of SMSs that can be stored on an iPhone. Since I got one I’ve come across this upper limit a few times already and I’ve always wondered why this has to be so.
iPhone Skinning tells us about a hack called “No SMS Limit” (heck of an imaginative title) that removes this block. Whether or not this will result in complications down the road remains to be seen, so hax0r beware.
To get it, just open up NullRiver’s Installer on your iPhone (assuming you’ve jailbroken your unit and are more or less used to adding third-party apps; if not, you need to go to a whole other post), and add http://iphone.totalmatrix.net to your Sources. Reload and look for it under Tweaks (1.1.1).
Be aware you’ll also need SMSD on your system to access the SMS archives (and you need to get this first before getting No SMS Limit), which in turn require Erica Sadun’s UIctl, a UI for launchctl, first. Both SMSD and UIctl are available on Installer already.
No SMS Limit will require you to cold-boot your iPhone, and will patch SMSD before it runs, so be forewarned.