Sophie Wallace

The engine's limit definitely isn't 256. I think Valve's server list has a cap of 256 player slots though.

I can guarantee it's not that simple

Use CompileFile. The decompressed contents of the Lua files don't actually exist anywhere on the file system so I don't see fixing this as necessary. http://wiki.garrysmod.com/page/Global/CompileFile

You're thinking of the CS Lua file limit? That limit is only for the amount of files which can be sent to clients by the server. Even with file.Read, include...

https://github.com/Facepunch/garrysmod-issues/issues/2085 related?

I think the anti-aliasing is there, it's just that there's no alpha channel or it's not being rendered properly.