Visual studio.net c# remote debugging question

Guys,
Not sure, if this is the right discussion group.

I have a scenario as follows
my .net service written in c# is running on a remote system.
joined this remote system to my domain.
added my domain account in 'debugger users' group.
restarted the system.

from my host system,
opened TOOLS -> DEBUG PROCESSES
selected DEFAULT mode
browsed to point to the remote system

But everytime, it comes back with an error
"Unable to connect to the machine <remote machine>. Not enough storage is
available to complete this operation."

I located this error message to windows error ERROR_OUTOFMEMORY.
I don't understand which memory is it referring to. I have 1GB of RAM and in
the system resources, I see most of it as available.

Can anyone please help me in explaining the best method to do remote
debugging for managed code ?. It used to be so simple for unmanaged code.

Thanks in anticipation.