There are two causes for an out of memory problem.
The first is that there isn't enough physical memory to hold all the data imported from the back and file information.
The second is related to having a significantly large amount of backup information that is being pulled into the application.
To check for this please execute the following script and check if the out put is a large figure.
SELECT distinct physical_device_name FROM msdb..backupmediafamily
WHERE media_set_id IN (SELECT media_set_id FROM msdb..backupset WHERE database_name = N'XXXXXXXX' AND type LIKE '[LDI]'
AND database_creation_date IN (SELECT MAX(database_creation_date) FROM msdb..backupset
WHERE database_name = N'XXXXXXXX')
AND device_type IN (2,7,102)
Please replace the two instances of XXXXXXXX with the relevant database names.
We are working on this problem and it will be fixed in the next release.
Red Gate Software Ltd