> This happened when there were 58 threads for Squeak (out of total 413
> threads for the whole system).

Yup. That matches my experience. You can create approx. 30 sockets
concurrently (depends on actual memory conditions) and then it's over. With
the change that I just made (reducing the default stack size from 32MB to
128k) it's now up to roughly 300 sockets (e.g., 600 threads). In a "clean"
system (freshly booted - there seem to be some long-term implications when
running other apps but that is likely to be an issue on 95/98) I even got
reliably ~700 sockets (1400 threads) running concurrently.

Cheers,
  - Andreas