As jraef indicated, motor insulation failure and winding blowout were a big problem in the early days of IGBT drives; however, this problem has been well studied and most drives and motor manufactures have recommendations for your use.
A good paper on the subject is:
Quote from Allen-Bradley Publication 20A-UM001M-EN-P – May, 2009 which is the Powerflex 70 User Manual:
Motor Cable Lengths:
Typically, motor lead lengths less than 30 meters (approximately 100 feet) are acceptable. However, if your application dictates longer lengths, refer to "Wiring and Grounding Guidelines for Pulse Width Modulated
(PWM) AC Drives" for details.
Per the following Allen-Bradley document "Wiring and Grounding Guidelines for Pulse Width Modulated
(PWM) AC Drives":
Page A-9:
A 25HP inverter duty motor (1600V insulation rating) is good for 600 ft without additional termination devices. However, this spec also requires the use of an appropriate cable, i.e., a shielded/unshielded cable designed for inverter use (an improperly designed cable can have capacitive charging currents that can cause nuisance overcurrent trips at long motor lead lengths).
I would recommend an inverter duty motor and a VFD rated shiedled cable and you should be fine.
With respect to the drive overcurrent protection:
For a 25HP Standard Duty Powerflex 70 drive (Model 20AD034), I would use a Bulletin 140M (part number 140M-F8E-C45) motor protection device. The devices are listed for use with the Powerflex drive and are typically cheaper than a UL489 breaker.
The previous information can be found in the following document (Powerflex 70 User Manual):
Page A-17
As jraef stated the circuit conductors are sized at 125% of drive rated input per NEC 430.122(A).
(FYI: NFPA standards including NFPA 70 2008 (the NEC) can be viewed online at NFPA.org)
Per Allen-Bradley a 25HP 480V Normal Duty drive has an input rating of 31.2A so 31.2A * 1.25 = 39A. Based on Table 310-16 a #8AWG @ 75 degC conductor is good for 50A so unless your branch circuit supply is far from the drive (voltage drop) a #6AWG is a bit of overkill. A #10AWG ground is ok.