UPDATE
Figured out a work around while poking through the prefs.ini.
The line:
PreloadModels=1
Change it to:
PreloadModels=0
I haven't had an out of memory error or crash for that matter after this so it seems to have something to do with this... In addition, it only takes about 30 seconds now to start the game new or load from a saved game as oppose to the five to ten minute wait time as it preloaded everything for the game!
Hope this helps to solve the out of memory bit when saving.
Grey