I wrote a solution to this by hacking together some pagination code with a modified WP_LIST_AUTHORS function. It seems to require a Cache plugin otherwise this page can load slowly, but it does work.
The code as well as further discussions on its formatting is located over in this thread: Modifying WP_LIST_AUTHOR Functions to output all users in a grid (and Paginate)
hope that helps!
PS -- If you just want to look at a properly formatted SQL query with a LIMIT and OFFSET for pagination, you can go here: http://www.phpfreaks.com/tutorial/basic-pagination
