virtex 4
Do you really need to connect all 1298 signals to external devices on your FPGA circuit board? If yes, then you need a larger FPGA. If not . . .
FPGA students sometime make the mistake of trying to synthesize a high-I/O module that's intended for internal use as if it were the project's top-level module. If that's your situation, then you can build a top-level module that instantiates the big module, and then connects only the necessary signals to the FPGA I/O pins.