I don't know what your error(s) really are, but you do not have a problem because of file size. The input file may be corrupt. The limit is 2 GB, and 255 columns. There is no row limit other than file size. If size were an issue VFP would appear to freeze and looking in Explorer would show the table to be 2 GB.
I've imported >2GB text files by using strtran() or substr() using low level file functions on the text file to more efficiently convey/store the same information with less data, so that the actual file I'm importing is less than 2GB, even if it means splitting the file into multiple files so that I can support >255 columns (you just need to remember to take the primary key for each table).
There are several ways to find the problem without spending hours.
For a fixed width file, you can read the file with fget(), which works line by line, and then identify the line using the length of the returned string as an indicator of the problem. You can use the code/example in faq184-4275 as a base. e.g.
if len(lcstring)<>200 &&I expect all lines to be 200 long
strtofile(lcstring,'badline.txt',1) &&the '1' makes it additive
endif
For a variable (or fixed width) file, when a non-ascii character might be causing an issue, you can fget() the file and fput() (or use filetostr() and strtofile()) into a new file with only allowable characters remaining using the technique set out in faq184-3378. Make sure to replace illegal characters with an allowable one so you don't mess up the fixed-width characteristics. Note that not all characters may be visible to you, so the solution may work even if you don't think that illegal characters are the problem.
If you're still having a problem, please describe your error more exactly.
Brian