Is there a limit to how many times a file in SP2010 can be checkedin and checkedout assuming the file size is small and we have no problem of space in the database. Pointers to any documentation with regard to that?
SharePoint document libraries III: Work with version history at the office website says no.
The first link is for SharePoint 2007 where it's easy to find, but if you want it confirmed for SharePoint 2010 then it's also mentioned in the description for the selection "Keep the following number of major versions" in Enable and configure versioning for a library
But in fact they're lying. The version number is stored in a 32-bit int of which 9 bits are used for minor version and one for sign, so you only have 22 bit for major version, so you'll hit the limit after version 4194303.0 unless they've change the storage in the SharePoint version you'll be running then. :-)