After a period of time, Toad will error out with an Out of Memory exception error. It can happen when performing a variety of actions within Toad.
In addition, Toad for SQL Server is painting red x's to fill boxes.
This is a Windows error, but is being investigated how it connected with Toad for SQL Server.
WORKAROUND:
Go to Tools | Options | Database | General | uncheck - 'Poll Service Status in connection list'
STATUS:
Waiting for fix in a future version of Toad for SQL Server.
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