If you are opening the file directly there's no matter how many of files you got in there. but if you are using TAB auto-complete to access file faster it will definitely affect the performance.
I found some clues in here -> https://stackoverflow.com/questions/197162/ntfs-performance-and-large-volumes-of-files-and-directories
To answer your question more directly: If you're looking at 100K
entries, no worries. Go knock yourself out. If you're looking at tens
of millions of entries, then either:
a) Make plans to sub-divide them into sub-folders (e.g., lets say you
have 100M files. It's better to store them in 1000 folders so that you
only have 100,000 files per folder than to store them into 1 big
folder. This will create 1000 folder indices instead of a single big
one that's more likely to hit the max # of fragments limit or
b) Make plans to run contig.exe on a regular basis to keep your big
folder's index defragmented.
Read below only if you're bored.
The actual limit isn't on the # of fragment, but on the number of
records of the data segment that stores the pointers to the fragment.
So what you have is a data segment that stores pointers to the
fragments of the directory data. The directory data stores information
about the sub-directories & sub-files that the directory supposedly
stored. Actually, a directory doesn't "store" anything. It's just a
tracking and presentation feature that presents the illusion of
hierarchy to the user since the storage medium itself is linear.