Lsass.exe Not Enough Virtual Memory or Paging....

File Quota to Complete this operation.

I am getting this error when trying to boot up F-In-Laws laptop.

Here is what i am doing:
  1. Switch on
  2. Windows XP splash screen appears, then disappears
  3. Windows Message Box appears with "Not Enough Virtual Memory or Paging File Quota to Complete this operation".
  4. Reboots itself and goes back to step 2. Repeat ad infinitum
Any ideas - thanks in advance.

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