You might want to check out Notepad+ which is a drop-in replacement for Windows Notepad. It is very simple, suffers not from file size limits, allows multiple files, and some other simple but useful improvements. I like it because it easily fits on a floppy so I can bring a decent editor to other machines when I need to.

Unfortunately, the author lost the source several years ago, and so nothing has happened since 1996, but it is solid and functional as is.

I just wish it had a % command! I'm going to check out VIM again as it's been a long time...