auto_increment simple question

[wxdqz]

Hi,
1)what's wrong with this sql file :
create table test_sites3 (
id INT AUTO_INCREMENT NOT NULL,
name varchar(200) NOT NULL,
link varchar(200) NOT NULL,
category varchar(200)
);

insert into test_sites3(id, name, link, category) values ( "Arthur Andersen", "http://www.arthurandersen.com/", "Audit Firms");
insert into test_sites3(id, name, link, category) values ( "Deloitte and Touche", "http://www.dttus.com/", "Audit Firms");
insert into test_sites3(id, name, link, category) values ( "KPMG", "http://www.kpmg.com/", "Audit Firms");

2) that's true that auto_increment is limited to 255 ? so what happened if we want to insert more than 255 rows ?
Thanks