"Out of Memory" Error Messages with Large Amounts of RAM Installed
(My view is that you should set your vcache setting to 25% the value of your actual physical RAM installed, or a max of 262144)
Taken from Microsoft article Q253912
The information in this article applies to:If a computer that is running any of the versions of Windows that are listed above contains more than 512 megabytes (for example, 768 megabytes) of physical memory (RAM), you may experience one or more of the following symptoms:
There is not enough memory available to run this program.
Quit one or more programs, and then try again.
Insufficient memory to initialize windows. Quit one or more memory-resident programs or remove unnecessary utilities from your Config.sys and Autoexec.bat files, and restart your computer.
The Windows 32-bit protected-mode cache driver (Vcache) determines the
maximum cache size based on the amount of RAM that is present when Windows
starts. Vcache then reserves enough memory addresses to permit it to access a
cache of the maximum size so that it can increase the cache to that size if
needed. These addresses are allocated in a range of virtual addresses from
0xC0000000 through 0xFFFFFFFF (3 to 4 gigabytes) known as the system arena.
On computers with large amounts of RAM, the maximum cache size can be large
enough that Vcache consumes all of the addresses in the system arena, leaving no
virtual memory addresses available for other functions such as opening an MS-DOS
prompt (creating a new virtual machine).
To work around this problem, use one of the following methods:
Q108079 32-Bit File Access Maximum Cache Size
Q181966 System Configuration Utility Advanced Troubleshooting Settings
Reduce the amount of memory that is installed in your computer to 512 MB or less.