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There has already been an OTA maintenance update released, perhaps this is one of the issues it fixes? My Nexus S is being delivered today so I can't test this theory yet
I use Handcent, so far I don't think I've had any issues
You need to set the option in your SMS app to automatically split the SMS messages. Currently that option is not in the default SMS app on the phone.
Where did you go to see that option? I looked in the settings for the stock SMS app, but I'm not seeing it