There is a limit, and it is defined by the finisher you have.
The best finishers do 5 sheets folded with no staple, 25 with a staple.
But that 25 has a caveat:
For uncoated < total possible sheets = weight of stock>
25 = 64-80 gsm
20 = 81-90 gsm
10 = 91-176 gsm
5 = 177-220 gsm
4 = 221-256 gsm
3 = 256-300 gsm
For coated stock:
10 = 106-176 gsm
5 = 177-220 gsm
Professional/Light production finisher can do Coated, the others cannot fold coated at all
I realize this thread is old, but I ran into the same issue on a Xerox 7545. I'm using InDesign to create a 4-page document. I have 76 contacts in Data Merge, which produced a 304-page document. Printing with folding turned on would not fold at all.
However, if I print only pages 1-20 with folding turned on, they'll fold. So it seems there is actually a limit for how many pages at a time can be folded. I printed my 304-page document 20 pages at a time with folding turned on, and that produced the desired result. It just required a lot of extra work to manually do that.
And to clarify, in my case, 20 pages print on 5 sheets of paper, since I'm printing on 11x17", double-sided.
We are having the same problem with Xerox 7545 using Mailmerge in MS Word 2010. It was also folding with the inside of the document on the outside. I corrected that with the "reverse print order" in the Options tab.
We have a Xerox Workcentre 5665 with a High Volume Finisher w/Booklet Maker. When we print a single 4 page document out of Microsoft Word 2003 to print on both sides to an 11x17 paper the printer will make one fold (booklet fold) in half, no problem.
When we run a mail merge the same document and send the merged document to the printer with the same printer settings it will no longer fold the page in half.
We are using the latest (I think) Post Script (PS) driver on Windows XP.