Upgraded to Visual Studio 2005. With a large project, I kept getting this error when building. No clues as to what was wrong or how to fix it.
Googled the message but little joy. Eventually found a link that suggested that virtual memory was the problem so changed my XP virtual memory.
Path is Control Panel / System / Advanced / Performance / Settings / Advanced / Virtual memory and selected "System managed size".
Seems to have fixed the problem.