On this... the 1024x1024 texture size limit depends on your computer's hardware. Newer more powerful cards can go higher than this, just be sure to choose a texture size that will match those generation of systems which you want your game to run on. 1024x1024 is a good size for most systems there days, however many would be able to do higher such as 2048 and even 4096 for the higher end video cards.
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