<div class="product-title">
  <a href="<?php echo $_product->getProductUrl() ?>" title="<?php echo $this->stripTags($_product->getName(), null, true) ?>">
    <?php //echo $_helper->productAttribute($_product, $_product->getName(), 'name') ?>
    <?php $name = $_product->getName(); ?>
    <?php $limit = 3; ?>
    <?php $words = explode(" ",$name); ?>
    <?php $countword = count($words); ?>
    <?php $wordname = implode(" ",array_splice($words,0,$limit)); ?>
    <?php if($countword > $limit) : ?>
      <?php echo $wordname .= "....."; ?>
    <?php else : ?>
      <?php echo $wordname; ?>
    <?php endif; ?>
  </a>
</div>

Jquery Example for character limit

<script>
  jQuery('.product-title a').each(function(){
      var data = jQuery(this).text(jQuery(this).text().trim().substr(0, 20)+'...');
  });
</script>

Code For Making ... After 3 Words Or Whatever Words You Want Using jQuery

<script type="text/javascript">
  jQuery(window).load(function() {
    jQuery('.product-grid .home-newproduct .clerk-product .item .product-title a').each(function() {
      var strText = jQuery(this).text();
      var str2 = strText.replace(/(([^\s]+\s\s*){3})(.*)/,"$1…");
      jQuery(this).text(str2.replace(" …","…"));
    });
  });
</script>