That's rather odd... I guess the idea was that you would want to show all the products that fell under the "new" range. Since there is no admin setting, you could modify the code to make your desired maximum.
In /includes/modules/your_template/new_products.php, find this around line 56:
PHP Code:
$num_products_count = ($new_products_query == '') ? 0 : $new_products->RecordCount();
// show only when 1 or more
Add a line in there:
if($num_products_count > 3) $num_products_count = 3;//2009-12-04
PHP Code:
$num_products_count = ($new_products_query == '') ? 0 : $new_products->RecordCount();
if($num_products_count > 3) $num_products_count = 3;//2009-12-04
// show only when 1 or more