Ah, yes. I think I know why. There's a setting in SSMS (buried somewhere, I can never remember the exact spot) where you can set the text output limit. In SQL Server 2005 I think it's either under Tools -> Options -> Query Results -> Results to Text: Maximum number of characters displayed in each column (I have mine set to 8192)... or it's the Tools -> Options -> Query Execution -> SQL Server -> General: SET TEXT SIZE (I have this set to 2147483647).

In 2008 I think it may be buried somewhere else in the options, perhaps even named differently.

Let me know if any of that helps and if not I will get on to a 2008 box as soon as I can and test it out.