Hi
In 3.04(1) I don't think you are limited to the number of lines of text which can appear, but the more there are and the longer any line is will set a limit on the position and font size you can usefully use to ensure it fits the screen.
As an example I have just set up 11 lines of text, the longest being 50 characters.
In order to get this to fit the screen it had to be positioned left central and have a font size of 5....
Errr....You aren't using the subtitles tab by any chance??
.......... 
Any way...For text.....
Click the "Add Text" tab on the toolbar and in the window that comes up type your text. Although you can fill the box, it is best to keep to about a dozen lines or so, as otherwise you will have to reduce the font size quite a bit to get it all in on the screen and the text may end up being too small to read.
Click the "Add" button and then drag the text overlay image to the first free overlay track.
Move the red cursor line until it is over the text box on the sequence line.
On the right you will see your text overlaid on the main clip but probably too large. So.....
Left click the overlay text to select it and in the left preview window click the big T
If you have quite long lines of text then move it all left by clicking the "Align left" icon in the position matrix.
Now reduce the font size by clicking the up or down arrow until your text looks as you want it in the right hand preview pane.
You can adjust the starting position and duration of the text by dragging the box to where you want it to start and then pulling out the right hand end to where you want it to finish.
You can set up 20 lines of text with a font size of 4 and still be just usable
You can set up 30 lines of 63 characters with a font size of 3.........Thats about the usable limit ! 
Nat