To determine how many 1mm squares fit in a 1000.25mm square, the basic calculation suggests that 1000^2 equals 1,000,000 squares. However, due to the additional 0.25mm on each side, the actual fitting is more complex, as the corners will not accommodate full squares. A discussion references a theorem related to packing squares, indicating that the waste in packing can be quantified by a function W(α), which is defined as W(α) = O(α^7/11). This means that while the maximum area of packed squares is theoretically α^2, the actual area will be slightly less due to the inefficiencies in packing. Overall, the problem of fitting squares in a larger square is mathematically intricate and involves considerations of geometry and optimization.