All computers' mainboards have a set limit by their design and of course their BIOS/EFI, and even more so in the case of a laptop. For example, the CPUs on MBPs are soldered into place permanently instead of using a socket, but even on boards with removable processors, they can only take so much. For another example, I have an older IWILL socket A mobo that had a 1.33ghz Athlon on it and I wanted to put in an unlocked 1800+ Athlon XP but it didn't work even though it fit physically and both CPUs had the same FSB.
Maximum recognizable RAM amounts and speeds also work similarly; putting DDR400 on a DDR266 board will work (usually, not always) but it will run at 266 speed and not 400. In the case of a laptop (once again i'll use a MBP as an example) upgrading the RAM might be limited by (once again) the BIOS/EFI; even though they make 2GB DDR2667 SODIMMS, I can't just drop a pair of them in my Core Duo (32bit) MBP since they were only designed for 2x 1GB DIMMS. This also can apply to desktop computers in many instances.
On a side note though, I did recall hearing that some older Powerbooks that were originally intended to run 640mb maximum (128mb integrated + a 512 stick I believe) were later reported to be able to run 1.12 GB (128mb + a 1GB stick) after a firmware update, but don't quote me on that.