When not all records are shown in a filter, no message is displayed to the user, and the items will appear to be "cut off". In the example, below I added all the members from a hierarchy (about 1500 items). You can see that it's only displaying items through "F", rather than all the items. If you were to click all the plus signs and count the items, (which I don't recommend), you'd notice there were exactly 500 items in the tree.

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There is a limit - it's 500 by default. If you need to change this limit, you can add a line to the 3 web.config files:
    <add key="Bpm.TreeViewControlMaxNumRecordsToRender" value="600" />
However, we aren't really recommending adjusting this setting too much larger, as there may be performance problems with the loading of the page. We are looking to address this after v1 by redesigning the way our filters load, to make it more "on-demand" than it is today. So, for now we recommend designing your dashboard so as to keep your filter tree items relatively small.
If what is being selected in the parameter could be implemented as security, that would be another approach, to bypass or limit the size of the parameter altogether

Note: as with any web.config file change, you have to make it in 3 places - by default:

SharePoint Site
C:\Inetpub\wwwroot\wss\VirtualDirectories\80\web.config
Preview Site
C:\Program Files\Microsoft Office PerformancePoint Server\3.0\Monitoring\PPSMonitoring_1\Preview
Web Service
C:\Program Files\Microsoft Office PerformancePoint Server\3.0\Monitoring\PPSMonitoring_1\WebService

Keep in mind that the above paths are examples; the actual paths may vary by SharePoint site & Monitoring instance ("PPSMonitoring_1") name.

Greg Bernhardt (gregbern@microsoft.com)