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Any need to still use master documents in Word 2011?

I understand that master documents are now almost redundant and that word documents can be thousands of pages long without problem. What about if there are a lot of embeded graphic files in the text that are bumping up the total file size. I have a lot of students about to write their thesis (250 pages or more with about 30 pages of photos) and I am concerned that in a single file document they may have problems. Should I get them to write into a single file?
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