I get the memory error occasionally too. The funny thing is that I normally have around 15-18 MBs of available RAM when that happens and maybe 2 programs running. It's really annoying and I understand your frustration.
Even though I have a task manager set up and close any and all running programs BT still thinks it doesn't have enough available memory to start (mind you with now 20 MBs of RAM free to run it!!). It's another WM hiccup. You're forced to do a soft reset to allow BT to finally realize it can actually run.
I don't see any fix for it outside of running BT first before any other programs when you freshly reset your PPC.
