Cygwin: fatal error - couldn't allocate heap, Win32 error 487

I am receiving this cygwin compiler error:

C:\cygwin420\bin\arm-elf-gcc.exe: *** fatal error - couldn’t allocate heap,
Win32 error 0, base 0x840000, top 0x850000, reserve_size 61440, allocsize 65536, page_const 4096

Has anyone seen this before?
Is there a solution to the issue?

The error just started yesterday while compiling either debugger or release build.

Using NET+OS 7.4.2
Connect ME Module
Windows XP SP3

Thank you for your help!

go to properties of arm-elf-gcc.exe, make.exe and start it in WinXP SP2 compaitability mode and select “Run as Administrator”