as for the personal bio bit... no idea if that many words will fit in. you can but try. though a shortened version of your toon's history/story would probably be better there, especially if you want people to take the time to read it :)
i'd say write the lore into your story as much as you like...
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Yeah, I checked the textedit field's css rules, and there's no limit to how much text you can enter (at least, no limit on clientside interface). Though that doesn't mean the server doesn't have a limiter that will give an error when submitting 1MB+ of text. :D I'm afraid to try, as I might invoke the wrath of the sysadmins.
As for roleplay... I wasn't really looking to place it in the forums as literature; my intention is to provide a bit of ingame depth to my character, in the context of the game environment.
When people are reading roleplay literature in the forums, they're outside the game environment, and somewhat detatched from the setting and background ambience that would lend immersive elements of the reader's mindset.
Also, I was more considering writing my story into the lore as a small part of the hivemind community contribution, rather than writing lore into the story. Though it would only be instantiated by acquaintances, rather than overwriting the grander scheme of Ryzom canon. Through this manner, character's stories would constantly evolve through a web of interaction, incorporating circumstances from friends' experiences into their own personal lore; it's sort of like the way BitTorrent protocol shares pieces from thousands of peers with thousands of other peers.
But I digress; I'm not so much concerned with roleplay proclivities so much as system capability to handle that much content (in theory, anyway; I'm not planning on starting a roleplay revolution).