1.7.9 does have that limit to 255 characters in a field - 1.8 does not have this problem anymore.
Other than that I imported your csv without any issues - the descriptions are cut if they were longer than 255 characters, but that’s only issue I had.
Could you double check everything in php.ini (and notes for specific environment if applicable) How do I upload files bigger than 2MB / How can I increase the upload file size limit?