The following code might be useful to help us figure out how to make description truncated. It's taken from tpl_modules_products_all_listing.php. What do you think?
Code:
if (PRODUCT_ALL_LIST_DESCRIPTION != '0') {
$disp_text = zen_get_products_description($products_all->fields['products_id']);
$disp_text = zen_clean_html($disp_text);
$display_products_description = stripslashes(zen_trunc_string($disp_text, 150, '<a href="' . zen_href_link(zen_get_info_page($products_all->fields['products_id']), 'products_id=' . $products_all->fields['products_id']) . '"> ' . MORE_INFO_TEXT . '</a>'));
} else {
$display_products_description = '';
}