I paid a small sum of $25 on my $4000 credit card debt to a collection agency threatening to sue me. Can they still go ahead a sue since I made some sort of payment?
Does the statue of limitation start all over again from that payment?

Yes and yes.

I payed a small sum of $25 on my $4000 credit card debt to a collection agency threatening to sue me. Can they still go ahead a sue since I made some sort of payment?
Does the statue of limitation start all over again from that payment?

Yes, by paying it you acknowledged you owe the debt. I am not sure where you are, in NY it is a 6 year SOL.

By paying them anything you have started the SOL all over again on your debt.