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Problem with Neatvideo - insufficient memory resources error

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Tried processing a file with the Neatvideo demo via Virtualdub. It goes along for a while but every time I get the following error:

Write error occurred on file "sourcefile.avi": Insufficient system resources exist to complete the requested service.


It happens whether it's DV or Huffyuv. Happens on Vdub 1.10.2 and 1.9.11

So far the Neatvideo forum hasn't proved helpful. They insist it isn't coming "from" Neatvideo. I would think the error message would be from Virtualdub.

XP Pro SP3
4 gigs ram
many many gigs of h/d space

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