I have a 60GB HD (Maxtor) being used on an old motherboard with a bios version that supports only 32GB. I am currently using the disk with the capacity limitation jumper set. 32 gigs nicely partitioned and formatted. The rest is inaccessible unless I upgrade my bios, or get and IDE controller, both which I dont want to do right now.
Problem: I hear people saying "using a disk with the capacity limit jumper set is bad, and may damage the disk or reduce its life time"
I can't see any reason why it should have any negative effect. The effect of the jumper is that you make the drive appear smaller to the BIOS. This simply causes some part of the disk to be unused.
This is no different than having 2 partitions and only using one of them.