Yes, it was REALLY odd. I ended up deleting all the choices and making that field a text box for fill in simply because I was in the middle of using the form. Here's exactly how things happened:
All 300 entries appeared in the pull down menu.
After filling out the form, the user is taken to a confirmation page prior to actually submitting the form (thank Heavens for that added feature!) and that was where we first found choices over 255 were "changed" to either 255 or 249.
First I went into the entries dbase to try to edit individual records---the edits would not save.
Then I went into phpmyadmin to see if I could manually change things there and even there the edits would not take. I would edit a "changed" choice to the higher/correct number, save it, and it would be changed BACK to the lower, incorrect number.
It was simply the strangest thing I have ever encountered.