Issue with the memory error >:(

[Motto_photo]

I keep getting the error message something about running out of memory. I have intel core duo based laptop with nvidia geforce go 7400 and 2gb of ram, which is more than what autodesk recommended when running 3ds max.

The things is I was working on this project for about a week, and just recently I've been getting this memory error. Its not even a high scene, my project is just a car...
I put on turbo smooth and lteration to 1 originally it was 2 but since the error i reduced it to 1, but still got the message. So I click on the turbo smooth just to see how my model looks. And then I click back editable poly to edit, and then I get the error. So honestly I can't even touch my project. I have tried the 3gb
switch, and setting the virtual memory to max but still this darn error.

I thought the recommend ram was 1gb and I have 2gb. Why am I getting this error? How do i make max use less memory? This is irritating me. I haven't been able to work on my project for 3 days.

EDIT:
Just a little more details about my problem. Ok as I said before I used to get a memory error message but now its a different message as shown in the screenshot. But I'm assuming the cause for this problem is the same.

I opend up my file, clicked on my project and it was in turbosmooth. Then i clicked back to editably poly, then turbosmooth, then editable poly etc.
There was not a single message.

But...lets say I clicked on the editably poly, and when I edited it,(I extruded something) then click turbosmooth and then click back to editable poly, I got the error shown in the screenshot.

I don't get this, most people have 1-2gb of ram and when ever i search many forums I dont find anyone else with the problem I'm facing.