If you peruse the comments of linux-2.6.29.1-tinycore/drivers/block/loop.c you will see:
*
* Maximum number of loop devices when compiled-in now selectable by passing
* max_loop=<1-255> to the kernel on boot.
* Erik I. Bolsø, <eriki@himolde.no>, Oct 31, 1999
*
* Completely rewrite request handling to be make_request_fn style and
* non blocking, pushing work to a helper thread. Lots of fixes from
* Al Viro too.
* Jens Axboe <axboe@suse.de>, Nov 2000
*
* Support up to 256 loop devices
* Heinz Mauelshagen <mge@sistina.com>, Feb 2002
*