Out of memory with 16gb ram?

I am running CS4 on an 3.0 8 Core Mac Pro with 16gb of ram and a raid 0 scratch drive made from 6x15k drives. I had my memory usage set to 92% with 10.5.6. I recenetly upgraded to Snow Leoaprd and was working on a 3mb file, with no other applications runining, besides firefox.  I was trying to use the quick selection tool and when I tried taking away from the selection I got the "out of memory (ram)" error. So I dropped the ram usage for ps it down to 85% and that seemed to work. Is this normal for Snow Leoaprd? In the past, people had recommended that if you had over 10gb of ram to set your ram usage to 100%, but I see that must no longer be the case?
Thanks,
Steve

Now I just tried opening up one page of a 9pg pdf file in CS4, and I got the "not enough memory" error again? I have 10.5.6 on another drive, so I went back to that operatinig system and tried opeing the same file in CS4 with the memory usage set at 92% and it opened up fine.

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