I am getting the memory error but my math tells me I have enough physical memory for this all to work. Even if I had all the VMs running it should still allow the Host 1.4GB for itself.
Host
2003 Std 4096 Installed
Guests RAM (MB) Running
XP Pro 188 Y
XP Pro 188 N
2003 Std (1) 768 Y
2003 Std (2) 768 N
2003 Std (3) 768 Y
Total VMs 2680
Total VM in Use 1912
Host
2003 Std 4096 Installed
Guests RAM (MB) Running
XP Pro 188 Y
XP Pro 188 N
2003 Std (1) 768 Y
2003 Std (2) 768 N
2003 Std (3) 768 Y
Total VMs 2680
Total VM in Use 1912