> What is the largest volume z/VM 5.1 can handle? 

For CKD, 32767 cylinders. For emulated FBA, I think (no manuals at
hand), 384G (you need SCSI support for this). 

>  If only the data utilized
> the one huge volume, what would be the repercussions?

Depends on the access patterns in the app. If it's mostly sequential
reads, it'd probably be OK. Random access will definitely see some seek
queuing. 

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