Yes, I have experienced the same problem!
It seems to depend on what Quandrant Type you choose to generate.  With the maximum set to 255 and I get:
Mid-Life:  This works.  I get lots of star systems.
Cluster:  Doesn't work as well.  There's always a blank area around the four borders of the galaxy without any systems.
Galactic Edge:  BAD!  Get nowhere near 255.
Spiral Arm: BAD!  Most of the stars form a rectangle on the outer edge of the quadrant window, with not many stars in the middle.
Grid:  BAD!  Get a quadrant with stars neatly arranged in a grid, but nowhere near 255 stars.
Ancient:  This works OK.   Get lots of systems.
So try using Mid-Life or Ancient.   
 
 
Does anybody know how to fix the other quadrant types?