Not enough memory available

I am running into some memory issues with my Windows XP pro Box and I can’t figure out why.

I am trying to save some large Adobe files 90mb+ as web images with Adobe photo shop elements.
When I try to save the image I get an error saying “could not complete this operation there was not enough memory available”
My system specs follow:
Dual 3Ghz P4 processors HT enabled
3GB PC2100 RAM
2 – 120GB SCSI Hard drives
Paging file is 4+ GB and is on a seperate HD than the OS.
and I have set the PC up for MAX performance.

Somebody please help me figure out what is causing this issue. I know this machine should not be having this issue.

Thanks