Hmmm really? I distinctly remember being able to load all of Mod Archive, AND an archive of about 40,000 modules that Axxy sent me a while back. That's something like 70,000 mods :O, and it only crashed after fairly long intervals of time... Hmm, though, come to think of it, you may have to load them bit by bit, since I remember XMPlay crashing a few times when I was attempting to create the playlist, but then being fine after it was set up, and it could load it again fine. Sensitive, moody program I tell you.
I'll look into that again soon I suppose, to make sure I'm not daydreaming.