Whoa. I must be tired right now, because I totally read Scheherazade wrong at first. I kept looking at it thinking "No way...is this card seriously that overpowered? What am I missing? Host any number of programs?? Does that mean that the MU limit just worthless now?"

Then I calmed down and looked at it again...it can HOST any number of programs, but the memory units from the hosted program(s) STILL COUNT toward the runner's MU limit.

Phew! I feel better now. I thought the Corp was seriously up a creek for a moment there.

Please don't make the same mistake that I did. Read the cards CAREFULLY. Don't read things that aren't there!

What I've been wondering about Scheherezade is that, if it is hosted onto Omni-Drive or Djinn, will the programs that are hosted on it count against the memory limit?

Aka; Rulings Question, if Program B is hosted onto program A, and program C is hosted onto program B, will program C be considered to be hosted onto program A, and thus receive its benefits?

Nope. A program can only be hosted in one place, as per the FAQ entry for Parasite. So you could nest hosted programs, but only the immediate relationships do anything.