I am sort of doing a very educated guess here, but I am almost positive there are NO such statistical limits, normalization rules, or modified results,..here at TSN!. We have all seen far too many records go by the way side for this option to be on. And not just records being broken, but records being crushed!
Also, I seem to remember someone saying (maybe even Bernie) that this option was not on! I may be wrong but I doubt it.
There may be two issues at hand here. I am going to get to the bottom of this with my CD-ROM. (That will not prove anything here at TSN, but at least I will know exactly what "Options" are available for Strat-O-Matic)
The way I always understood it (and I could be wrong, but I don't think so..) is that there is an option to limit (or normalize) certain stats like batting average and homeruns.
As far, as someone like Eckersley (or some pitcher) not walking someone all year, I really do not think there is a limit on that. However, this I am less sure of.