Out of memory errors like this are normally due to using PBP.EXE instead of PBPW.EXE which is the Windows executable, and it handles memory much better than the DOS command line executable PBP.EXE.

Be sure you're pointing your editor to PBPW.EXE VS PBP.EXE. Should cure the problem.

I just got version picbasic Pro 2.46

If you have an older version of PBP installed on the same machine, make sure your using the new version.