To answer my own question, it seems that 25K is the limit/file.
A couple of things that (so far) seem to be the case.
When you implement the cache manifest file, even emptying the cache in Safari will NOT clear it for your app. You need to modify the cache file so as to trigger the cache to refresh itself. I find that once I had it working, I deleted the cache for development, re-built it on the staging site when we push a new update for review.
Jonathan Stark's
cache debugger was invaluable. It's simple, but worked well.