Error message in Premiere Elements 4 to 9 "Running short on Memory"

When you get the error message " RUNNING SHORT ON MEMORY" save your work > in Premiere Elements while editing with H.264 mov files in excess of 1GB is it related to the Microsoft Operating System Limit of 4GB and 2GB performance of the program to 2GB ? 

Hi Steve,
The H.264 mov  1920x 1080p clips are from a Canon 5D Mark II which we have been using for over two years mainly for stills. however, the movie capabilities of this camera has been used commercially  re: jazz band performances and promos. We have successfully used it to produce DVD's and Blu-Ray discs and Export to Tape. However, the one glitch we have had is importing a large number of clips into Premiere Elements 4. it will take approx 30 clips at 25mb each which can be easily rendered and then Exported to Movie as HDV/mpeg-2 Uncompressed avi,( they DELL have recommended to go to CS5 as soon as possible, which we intend to do) to be finally edited in Premiere Pro 1.5.1 as it does not like H.264 mov.
According to Dell Technical Support Australia the 4GB Operating System Limit in Windows and the 2G performance of the 32 bit Adobe Software is causing the issue , even in our i7 Wndows Professional Quad Core with 12GB RAM. The size of some of the productions sometimes exceed  98 GB and run after transcoding  very smoothly in Premiere Pro, which never crashes, and has been used for over 3 years without problems at all.
Regards..
See attached screen dumps, may help ? Neither program it taking advantage of the 64 bit OS in the new Workstation of course nor the 12GB Ram as they are only 32 bit.
Message was edited by: Bob Dix Photographer

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