Visual Studio and maximum length of the path of a project reference
The max recommended project name length is 64 char. Team foundation server do not allow more than 64 char See the following link http://www.grabthecode.com/visual-studio/length-of-visual-studio-project-name
Short answer - don't do that and it will not hurt. Consider less deep hierarchies and make related projects to live close.
MSBuild is managed application and CLR have restriction on path/file name length of about 256 characters...