Using *current version of msysgit for Windows (Win7 64bit), there is a big issue when
having pathnames longer than 256 characters.

The problem occurs, if git have to handle files with such an long path name.
Than, there will be "internal errors" poping up: "File or path name too long".
After that, thing getting more and more worse.

I did some investigations.

It seems, that the underlying "old" cygwin has some influence.

My test setup is Windows7 64bit "Git version 1.7.8-preview20111206". (also current one)
I've created some source folders with a length of 260+ long path names.
"git add" shows the following error:
fatal: unable to stat 'Adobe InDesign CS6 Server SDK/tools/benchmark/BenchmarkChartsConsole/src/com/adobe/ids/benchmark/
samples/dce/source/suribachi/src/suribachi/api/vo/action/tools/benchmark/BenchmarkChartsConsole/src/BenchmarkChartsConso
le-app.xml': No such file or directory
Of course, this file exists but has a long path.

Additionally I've tested this command ing Git bash:
"find . | wc -L"
Pops up this error (and much more):
find: ./Adobe InDesign CS6 Server SDK/tools/benchmark/BenchmarkChartsConsole/src/com/adobe/ids/benchmark/samples/samplec
lient-java-soap/src/com/adobe/ids/samples/sampleclient-aspnet-soap/sampleclient-aspnet-vb-soap/Default.aspx.vb: File or
path name too long

Than I've checked the find command within cygwin (CYGWIN_NT-6.1-WOW64 momo 1.7.15(0.260/5/3) 2012-05-09 10:25 i686 Cygwin)
Again "find . | wc -L" ... no errors,
result : 299

My blind guess:
So maybe just linking git against a newer cygwin should work?

Any help is appreciated, to get GIT work with long path names.