document limit on search standard

[qwertyjjj]

The document limit of 500,000 on MOSS Search standard.
Is that a document limit for what it can index or something else?

What happens if you have more than 500,000 documents - will they not be included in search results at all ?

Also, I take it when Microsoft mention documents here, they actually mean objects. For example, searching across public email folders, fileshares, intranet links, etc.