QCS reports the following error for a Calendar or Free Busy Sync.
!<F/B Receiver> (37990) Packet Queue processing failed. Code : 0x8007000e,Description : Not enough storage is available to complete this operation. [EIP: 0x02DC9C18,0x02DBFD9E] [EIP: 0x054B43F0,0x0549088C]
As first step perform the "Clean Up Now" under Packet Queue and "Purge" under Suspended Objects and then restart the Quest services.
On Windows 2008 or greater check the installation directory (C:\Program Files (x86)\Quest Software\Collaboration Services\3.7.0.058) for blocked files. Right click on each .exe and .dll file and select properties. On the general tab if there is an "UnBlock File" button click it to unblock the file.
For more information please see QCS User Guide, the part called "Fine-Tuning and Maintenance" and "Resource Throttling" about increasing the memory usage and monitoring disk space issues.
"Not enough storage is available to complete this operation" is a common MS error.
Official MS recommendation when you see this error is:
Error Message: Not enough storage is available to complete this operation.
User Action: Do one of the following, then retry the operation: (1) reduce the number of running programs; (2) remove unwanted files from the disk the paging file is on and restart the system; (3) check the paging file disk for an I/O error; or (4) install additional memory in your system.
Resource: http://technet.microsoft.com/en-us/library/cc978736.aspx
Rebooting the QCS console machine once in a while is a good idea and might prevent such issues from occurring. See also attached screenshots.