"Out of Memory" - "Disk space" errors

> I have Movie Maker version: 2.0.3312.0. & XP version: 5.1
> (Build 2600.xpsp2.030422-1633: Service Pack 1).
>
> I cannot run a 2mb movie without getting the error
> message, "Ran out of memory" -- I have 512mb RAM on the
> PC, and when checking "About" it says "Physical memory
> available to Windows: 458,224KB".
>
> When saving as a movie, I get the following
> error: "Windows Movie Maker cannot save the movie to the
> specified location. Verify that the original source
> files used in your movie are still available, that the
> saving location is still available, and that there is
> enough free disk space available, then try again."
>
> 1. I have the original files - they can be played in
> several players. They are WMV files. I also have them
> as AVI files. Either way I get the same error.
> 2. Saving location is available on both drives.
> 3. I have 64GB of space available on one drive, and 20GB
> available on another - neither work.
>
> Any advice will be helpful.
>
> Thanks,
> Randy