corel giving error " out of memory"

corel X5 is giving me out of memory error for a file as small as 66 mb. I am running on a machine with core 2 duo , 4 GB ram and paging file size set to auto. I have tried setting the paging size to very and low too but the  same effect. 

earlier I tried splitting the file and it helped for another file of 95 mb but this file it simply wont even save when i try to delete excess pages. I have tried deleting all temp files, closing other programs.

Apparently the problem is that when i checked the task manager, it showed corel using only 1.5 GB of memory when i have still a lot more. 1.5 GB seems to be the magic number where it crashes. the moment it comes to that size , it gives the error. How can i increase its memory size usage. 

Is this a problem with the program or the file.