File and Directory Table limits

Hello Everyone

I am authoring a large msi package with 70k files and 40k components. I
checked File, Media, and Validation tables for short integer and they all are
using long (I4).

For some reason I get the following error even after taking care of issues
found in msival:
The installer has encountered an expected error installing this package.
This may indicate a problem with this package. The error code is 2705.

The installer is authored in WiX 3.5. I have tried both creating 14 cab
files without embedding to not using cab files, but no cigar.

The detailed log shows:
DEBUG: Error 2705: Invalid table Directory: Could not be linked as tree.
The directory table has 82540 rows.
I know the undocumented limit of component table to be 16bit (65536). Does
same limit applies to any/all tables in msi?
I am clueless as to where to look

I really need to get this done but am running in circles so any suggestion
or ideas are welcomed.

Please help!

Thanks

ANK