This is all normal. In my modifiedPercival IBDWT, log2(k)/2 bits are required in each FFT word.
So let's say the 32K FFT can handle 20 bits per FFT word. If k=1, n can be 32K*20 or 640K. If k = 8191, then log2(k)/2 = 6.5 bits. That leaves 13.5 bits per word. So now you can only handle n up to 32K*13.5 = 432K.
