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Why do I get an “Insufficient system resources exist to complete the API” error message?

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Why do I get an “Insufficient system resources exist to complete the API” error message?

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In rare instances, you may receive the following error message: ‘Insufficient System Resources Exist to Complete the API’. This issue may occur under conditions where physical RAM is very fragmented, and hibernation may not work. To resolve the issue, close all programs and restart the computer. This is not an issue with Windows XP SP2.

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