I often get an Not enough storage is available to complete this operation Error when compiling a large Solution. By storage they mean Memory (RAM) in fact.
Visual Studio is limited by how much RAM it will use but theres a trick to increase the Memory it will use.

Quick HowTo:
1.
Windows xp: backup the boot.ini file and then put the /3gb switch in your boot.ini.
Windows Vista: run the following from the visual studio command prompt:
bcdedit /set increaseuserva 3072

2.
– be sure to backup devenv.exe
– using the visual studio command prompt, navigate to c:\program files\microsoft visual studio 9\common7\ide\
– execute the following command:
editbin /largeaddressaware devenv.exe

Here’s the Link to the original entry:

http://stevenharman.net/blog/archive/2008/04/29/hacking-visual-studio-to-use-more-than-2gigabytes-of-memory.aspx