Yes it can! Go into Firefox's preferences, and change the setting from "Remember history" to "Use custom settings for history". Then you can configure how long it remembers.
If you remember what it was called in about:config, try adding it back manually. It's carry over code base so it might just work.
Sadly I had to give up on FF when it kept hanging my Macbook and my wife's Mini. We are all using Chrome these days and Safari for the occasional web page that doesn't look right in Chrome.