HI Audrey - The size of the SD card makes no differance to the rule of 20 items per folder, 99 folders per SD card other than the obvious fact that you would have a problem trying to fit 20 items per folder 99 folders on to an 8MB card - the capacity of the card would be too small.
A complete Custom Style file of 20 differant styles and filed under one name is still regarded as ONE item in one folder against the 20 items per folder and 99 folders per SD card. Obviously though it will take up more Storage memory as it is a much larger file.
A Favourites file if filed on its own, is also counted as one item in the 20 items per folder and 99 per SD card. There is no reason why a favourites file cannot be included as part of another file of other settings although for your own recognition purposes I can understand that you would wish to store it separately..........Joan