So it is a SCORM 1.2 system, the limit is as pointed out 4096 bits, 2004 improved this upping it to 64KB.
The suspend data is the bookmarking component
There is a limitation this imposes on the number of slides you can use which is 370 simple pages. As you add content this will change, an mpg file will add a few characters. It wouldn't be unusual to see 26 pages with 8 question blocks getting near to the limit.
As SCORM is a fairly loose standard in some ways many of the LMS's allow the size of cmi_suspend to be increased on the 1.2 modela, is this a possibility on yours? BTW if it's Articulate then forget it and just cut the module into chunks.
Even better migrate to a 2004 platform, 1.2 is over 8 years old now and 2004 is actively being devoloped and refined. There were some nice ideas from work last year on 2.0 but it isn't going to be here for a few years.
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Best advice is simplify or use the modular sco idea and chop the module into more discrete components.