The out of memory error only occurs at initial Bluetooth radio startup, and yes, a soft reset will clear enough memory to allow it to run. Got to love memory leaks!
It's not like your iPaq will get full of Bluetooth GPS NMEA sentence strings and need to be burped. [

]
If your gonna use Mapopolis, make sure you get the latest beta. VGA support etc. I usually go to the GPSPassion.com dedicated Mapopolis/news forum. Links, latest, etc.Pretty stable now, as well.
What with all the battery issues, I'm gonna let mine sit on the original ROM til I the WM5 upgrade has been out a bit. Unless that HTC Universal proves too tempting...