I am using SQL Server Management studio and keep getting the same error, and the only way to get rid of it(usually) is to reset the SQL server(which is very annoying, and so
http://social.msdn.microsoft.com/Forums/en-US/sqldatabaseengine/thread/7bf48a75-58a0-41d7-b514-b804a49ae8ff/
it seems to be a bug in SSMS I don't think I have over 4000 characters, but I can confirm this only happens on rows that have more data than others.. there seems to be some abritary limit that I can't quite put my finger on..
So, plainly SSMS is complete crap. I'll be looking for a new SQL manager..
I had exactly the same problem. It looks like this article was pretty good at solving it. Seems all sorts of buggy things in some versions.
See: You may receive an error message when you try to use SQL Server Management Studio to update a row of a table in SQL Server 2005.
The table contains one or more columns of the text or ntext data type. The value of one of these columns contains the following characters.
You shouldn't edit a table directly from the table view.. you should use an UPDATE sql command.