out of memory error

Everytime I attempt to use the Movie Maker, I get an error that says out of memory. I've rebooted and tried again and still no such luck. I've cleared my cache of temporary files, defragged, rebooted and the error returns.

Windows manages my page file and my system is running 1.25gb of pc1066 rdram. Windows has preset my system to use 1278mb of memory. My system also uses a radeon 9600tx video card with 128mb ddrdram.

I've run into this same problem with other microsoft products such as picture-it, windows media player, etc.. I have found other programs that do not give me any errors or problems such as all adobe photoshop 7.0 and quicktime player and divx player and another mpeg joiner that will let me join mpegs, windows media files, and other formats together without errors or problems.

Why do non-microsoft programs run fine but microsoft programs run afoul?