I keep getting this annoying problem on MacOS 9.0.4 on both my 400 MHz G3 and new Dual 500 MHz G4.
It seems the Finder is trying to be smart about the memory it allocates, and doesn't grow its heap zone much beyond what it can store. So I see that it typically has only about 100 KB free at any one time.
Sounds great. The only problem is the Finder keeps telling me it is "Running low on memory", closes all my Finder windows and then tells me it is out of memory, giving me an alert with the buttons "Try Again" and "Restart". The truly funny thing is my G3 has 256 MB of RAM and my G4 has 512 MB of RAM. When the Finder complains, there is more than enough free memory available.
Has anyone encountered this before? It is very annoying because it happens all the time. Any and all advice on fixing this would be greatly appreciated.