How can it "look like" I checked your script out or not? I infact read through the whole script intially multiple times, otherwise I would not have made the statement.

If this is a production system what are you doing for backups while trying to figure out this procedure? If this is production and you are using code written by someone no longer there, I would implement maintenance plans to keep the data backed up for the company. Then while that is running successfully, work on rewriting the procedure in a manner that I understood everything it was doing, especially if I was sole support for the environment.

There is nothing in that procedure that would cause it to skip any database based on the size of it. The script is not aware of the size of any database, just the name of it. In order to deteremine what might be causing it to "stop" (which I have no clue what you mean by that) would be to include error handling (e.g. try/catch blocks).