It's 256 blocks (128 distance - the 'cube' it looks within is 256 ont he side, with you in the centre) regardless of whether you're in the nether or not.

i.e.:
Create a gate in the real world, game scans for a gate in the nether within a 128 block radius of derived target position (real world x/8, real world z/8) in nether.

Create a gate in the nether, game scans for a gate in the real world within a 128 block radius of derived target position (nether x * 8, nether z * 8) in real world.

So yeah, if your places in the real world are more than 128256 apart, you'll need two separate nether gates. But you could position those two nether gates as close as possible in the nether. I mean if your places are just over 128256 apart, you could have two gates in the nether virtually right next to each other.

             , ,   , ,   , ,   , ,   , ,   
  `'        (o,o) (o,o) (o,o) (o,o) (o,o)  
   *\*      |)__) |)__) |)__) |)__) |)__)  
     ''`>-,--”-”---”-”---”-”---”-”---”-”----
,'.*''`               

seems about right

surprised our y=65 - thought it was much higher

[edit] it is, ours is at 107 :)

Oh, looks like that's the dynamic map being buggy. It returns y=65 for everything.

Should have realised that. :'S

I think I've sorted the new Nether world. Can you give it a go.

Also, I've just logged in for the first time in ages into the normal world and my inventory is empty. Has this happened before?

I think that was from her chest(s) (nj).

Mine was what I actually had on me.

I think I set up separate inventories between normal and 2012. Might be something to do with that.

This is now out on Xbox. Finally got a friend to try it out and he loves it.

So looks like i'll be playing on consoles only for a while (may be able to get it for pc/mac later).