Retrieving a sharepoint list in Infopath only shows first 100 records

I am retrieving a list of values from a sharepoint list, which works well but my problem is that it only retrieves the first 100 records. there are currently 500 records that should be available.

Scenario: I have two comboboxes on an infopath form:

1. A List of Locations
2. A list of areas within the locations

the list of locations will filter the list of areas but as infopath seems to only retrieve the first 100 records so most of the locations do not show any areas as there is nothing to filter.

By design, the query will only return the first page of results from the default view for the list. Change the item limit for the default view in SharePoint, and you'll change the returned values for InfoPath.

EDIT (links from my comments, here for greater readability):

Here are sources describing this fix in MSDN forum (scroll to the bottom), a blog comment that describes the SharePoint setting step-by-step, one with a screen cap of the somewhat counter-intuitive interface, and another describing performance implications on the server side.

Hope this helps.