It´s probably a few years to late to make a surgestion, to this problem. (and I have´nt read the whole thread, so the this might be a repertition) But if your working with stills, make sure, they are about the same size as your project. I´m working with a 1920×1080, so I made the image width 1920pixels in photoshop. Before I did that, I could´nt render it, and got the same out of memory message. But now it´s running fine. (sorry for any misspells, I´m Danish:)