After upgrading the RAM to 512 MB, the system displays an error message stating it’s “out of memory.”
Cause: This is due to a bug in Windows 9x and Windows ME systems that have more than 512 MB of RAM. This is because the OS reserves too much memory to be used as temporary cache. The reservation is based on the amount of RAM. Therefore, when you use any Windows application, or at Windows startup itself, this error message pops up; the system is not actually out of memory.
Solution/Workaround: Go to Start > Run and type in “sysedit” and hit [Enter]. The System Configuration Editor window opens; it opens all the system configuration files within its window. Choose the ‘C:\Windows\system.ini’ box, and under ‘[vcache]’, enter the following parameter:
The above value is in KB, and the amount should be less than or equal to 512 MB. If you do not have [vcache] in your system.ini file, then make the entry towards the end of the file:
Save the file and reboot the machine.