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If the buffer isnt making a poly, what are the values for that record that are being put into the buffer?
What is your memory consumption upon the 899th loop? Perhaps you are running out of memory.
Does it fail if you start at 900? How about 901? I run cursors on 117000 record parcel feature classes every Monday morning with no problem. Can we see the whole of the code?
That sounds like an error in your source point file then. Have you tried Repair Geometry on the point file?
Also, if you are using a cursor to iterate over a point file and exporting the points one at a time to a new feature class just for the geometry you can chop that step out by using the geometry object. The row object can give your the geometry to use as the input for the buffer tool. This would save the time it takes to write out to a new file over and over again.