It seems like most people don't know about this feature, but Windows will rotate the log files automatically if so-configured. Look for "AutoBackupLogFiles" in this file.
You can configure this on a server-for-server basis, but that's tedious for a large number of servers. I created an Administrative Template to set this on server computers, and then scripted a startup script to add a scheduled task to periodically pick up, ZIP, and move the log files to a retention location. It worked really well, and was cheap!
http://mx02.wellbury.com/misc/EventLogPolicy.adm
It would appear that Microsoft themselves do not specify the recommended event log sizes for Windows XP (unlike the article you linked to for Windows Server 2003/2008).
Despite this, there is some information out there from other large organizations, that offers default sizes and recommended size settings:
The Computer Security Resource Centre at NIST, in its publication entitled, "Guidance for Securing Microsoft Windows XP Systems for IT Professionals: A NIST Security Configuration Checklist" states:
For the Application log, the maximum
size should be set to 16384 kilobtes.
For the Security log, the maximum size
should be set to 81920 kilobytes. For
the System log, the maximum size
should be set to 16384 kilobytes.
The NSA document, "Windows XP Security Guide" states:
Table 3.18
Event Log Security Setting
Recommendations Setting EC desktop EC laptop SSLF desktop SSLF laptop
Maximum appl. log size 16384 KB 16384 KB 16384 KB 16384 KB
Maximum security log size 81920 KB 81920 KB 81920 KB 81920 KB
Maximum system log size 16384 KB 16384 KB 16384 KB 16384 KB
(where EC = Enterprise Client & SSLF = Specialized Security - Limited Functionality)
And finally, the DISA publication, "Windows XP Security Checklist" states:
If any of the following conditions are
true, then this is a finding:
If the value for “Maximum application
log size” is not set to a minimum of
“16384 kilobytes”, then this is a
finding.
If the value for “Maximum security log
size” is not set to a minimum of
“81920 kilobytes”, then this is a
finding.
If the value for “Maximum system log
size” is not set to a minimum of
“16384 kilobytes”, then this is a
finding.
Of course, the default sizes of 512kb for each event log, as configured by Windows XP itself upon installation, could be considered the "default" sizes.
Some other links that may be useful:
Microsoft Windows XP Power Productivity Book (on Google Books)
Group Policy Settings - Security Settings - Event Log
Fixing "The Event Log is Full" Error on Windows XP
Best Answer
Other than the awful performance and ridiculous wait times when you have to load a 4 GB log and the hell it will be if you ever have to search through such a monstrous thing, not much. I think the largest one I've seen in my environments was 10 GB, and although I gave up waiting on it to load, it didn't seem to harm anything.
The 4GB caution for Server 2008 is due to that 32-bit limit that's often encountered at 4 GB. On a 64 bit system, you should be fine to let it grow to up to 16 TB (or 64, depending), though I don't know that anyone's gotten anywhere close to testing that limit.
Of course, if you haven't already, you'll discover that very large log files are simply impractical to use - the last time I tried to load a simple 100 GB (text) log file, it couldn't even be opened without crashing the application opening it, and I suspect you'll hit that issue well before 100 GB.
The far better approach is to limit the file size to something reasonable, and use a script to clear it out from time to time. I use the below in my environment, combined with a 1 GB size limit on our security log. Some (well, most) of our servers generate over 3 GB of security events per day, and we don't want to waste all that space on huge log files I'll quit before combing through, so my script copies the log contents to another folder and then clears the event log to be written to again. And since the folder I copy them to is backed up, we can always go back to the logs in the horrible event that we need to.