Hi Lucky,
This is expected behaviour for this version;
Directory Search
Cisco Unified CME 4.3 increases the number of entries supported in a search results list from 32 to up to 240 when using the directory search feature. For example, if a user enters "smith" as the last name, all 240 matches are displayed on eight different pages, with 30 entries per page. If multiple pages are required, the phone displays two new soft keys, "Next" and "Prev" that the phone user can press to move back and forth between the previous and next pages. Text such as "Page 2 of 3" displays to indicate the current and total pages on the search results.
http://www.cisco.com/en/US/docs/voice_ip_comm/cucme/admin/configuration/guide/cmedirs.html#wp1021832
Here is the info for "older" CME versions like you
are seeing;
When a phone user selects the Directories > Local Directory menu, the phone displays a search page from Cisco Unified CME. After a user enters the search information, the phone sends the information to Cisco Unified CME, which searches for the requested number or name pattern in the directory number configuration and sends the response back to the phone, which displays the matched results. The phone can display up to 32 directory entries. If a search results in more than 32 entries, the phone displays an error message and the user must refine the search criteria to narrow the results.
http://www.cisco.com/en/US/docs/voice_ip_comm/cucme/admin/configuration/guide/cmedirs.html
Cheers!
Rob
