Yeah, it just kept adding up. I almost always took the forest routes through the Frontier instead of the roads, and only use Fast Travel when I'm really in a hurry.
It's weird if it was an item cap, though, as I had exactly 1034 pelts. Seems like such a... random number to be a cap. Glad it got fixed, though, as it would suck a lot if it was permanent. I'll be sure to get rid of stuff every time it gets near 1000 to be safe.
Call me Mega, Megaman, X, or any variation/combination of the previously stated names. Official Liu Kang of the PS3 Mortal Kombat board.