Hi,
It sems to me that Account Name 1 search filed point to MC_NAME1(BUT000) which has a length of 35 CHAR. That is why if we search a partner with a word after 35 char it does not give right results.
During account creation if we use more then 35 CHAR SAP system gives warning that last 5 CHAR of 40 CHAR are restrcited so I assume it means those need to avoided if possible.
Still Name1 can have 40 CHAR but there are some scenarios such as search, EDI, Print etc get affected.
Hope this help...
Lovekush Singh