I have always had trouble understanding why at times .NET will allow you to allocate a block of memory and then a couple of minutes later it will refuse to do so, even though there is enough free memory available.
In my case I know its because of .NET not compacting the large object heap.
And this article explains it very well with a code example and also typical work arounds - good read!
http://www.codeproject.com/useritems/Large_Objects____Trouble.asp
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