Error: System.OutOfMemoryException on Log Reader for SQL Server (4220823)

Error: System.OutOfMemoryException on Log Reader for SQL Server when reading large transaction log files via Quest Log Reader

This issue occurs because the SQL Server computer does not have sufficient memory to complete the requested operation.

The computer does not have sufficient memory to complete the requested operation when one or more of the following conditions are true:
A report is too large or too complex, or the overhead of the other running processes is very high, or the physical memory of the computer is too small.

From Microsoft's Support site: http://support.microsoft.com/kb/909678

Method 1
Add sufficient physical memory to the computer.

Note If you have more than 2 gigabytes (GB) of memory, you can enable the /3GB switch in the Boot.ini file for better performance. For more information about how to use the /3GB switch in SQL Server, click the following article number to view the article in the Microsoft Knowledge Base:
274750 (http://support.microsoft.com/kb/274750/ ) How to configure SQL Server to use more than 2 GB of physical memory

Method 2
Schedule reports to run at off-hours when memory constraints are lower.

Method 3
Adjust the MemoryLimit setting accordingly.

Note When you render a report through the Reporting Services Web service, the Reporting Services Web service obtains the MemoryLimit setting from the Machine.config file. However, a scheduled report is rendered by the Report Server Windows service. The Report Server Windows service obtains the MemoryLimit setting from the RSReportServer.config file.

Method 4

It can take a lot of memory to run log reader. If it runs out it will use the temp folder so he needs to have room there (2x the size of the logs he is reading)

For the complete posting on this topic, as well as supporting information, see: http://support.microsoft.com/kb/909678