OUT OF MEMORY

Can someone offer new advise...I am receiving out of memoryerrors while running solidworks 2007. I checked Windows taskmanager and when I am at 1.2 GB or higher on the Virtual Memorythis happens????

Running Windows XP Pro Service Pack 3 on DELL Precision 690
Intel Xeon Processor 2.00Ghz (x4)
RAM 3.00GBSolidworksAdministration