SQL Error Not enough storage is avalable

This is on a new Win2K server the PDC is a Windows 2003 Standard Server. Dual CPU 200Gigs disk space 4 gigs of RAM. The exact error message is [MS Design Tools] – Not enough storage is avalable to complete the operation. I receive this error when I try to run any query. This happens for all databases. I have updated MDAC to 2.8SP1 I updated SQL to SP4 and I still get the error.