URL path length restrictions (SharePoint Server 2010)

I have come across so many users who are not able to create or upload files after certain stage and it says

"The specified file or folder name is too long"

This is Limitation is in Sharepoint 2007 and continues in 2010.

The total length of a SharePoint URL equals the length of the folder or file path, including the protocol and server name and the folder or file name, plus any parameters that are included as part of the URL. The formula is as follows:

• URL = protocol + server name + folder or file path + folder or file name+ parameters

For example, the following is a typical URL path to a file stored in Microsoft SharePoint Server 2010:
http://www.contoso.com/sites/marketing/documents/Shared%20Documents/Promotion/Some%20File.xlsx

When you go to the site and open the file with Microsoft Office

http://www.contoso.com/sites/marketing/documents/_layouts/xlviewer.aspx?id=/sites/marketing/documents/Shared%20Documents/Promotion/Some%20File.xlsx&Source=http%3A%2F%2Fwww%2Econtoso%2Ecom%2Fsites%2Fmarketing%2Fdocuments%2FShared%2520Documents%2FForms%2FAllItems%2Easpx%3FRootFolder%3D%252Fsites%252Fmarketing%252Fdocuments%252FShared%2520Documents%252FPromotion%26FolderCTID%3D0x012000F2A09653197F4F4F919923797C42ADEC&DefaultItemOpen=1

The limitations In this section apply to the total length of the URL path to a folder or a file in SharePoint Server 2010 but not to the length of any parameters. Also, these limitations apply only to un-encoded URLs, not to encoded URLs. There is no limit to encoded URLs in SharePoint Server 2010. The limitations are the following:

• 260 Unicode (UTF-16) code units – the characters in a full file path, not including a domain/server name.
  
• 256 Unicode (UTF-16) code units – the characters in a full folder path, not including the file name and the domain/server name.
  
• 128 Unicode (UTF-16) code units - characters in a path component, that is, a file or folder name.
  
• 260 Unicode (UTF-16) code units – the characters in a full path, including a domain/server name for use with Office clients.
  
• 256 Unicode (UTF-16) code units – the characters in a full path including the domain/server name, for use with Active X controls.

Reference :

http://technet.microsoft.com/en-us/library/ff919564(v=office.14).aspx#about

You receive a "The specified file or folder name is too long" error message