That issue was supposedly fixed on Visual Studio 2008, but apparently it's not.
You can try these fixes:
1. Restart Visual Studio: That's the fastest and easiest fix.
2. Make sure to shutdown all other heavy processes, chrome...etc
3. Restart Your PC.
If none of that works then try this:
1. Windows basically is pre-configured to use lower 2GB for user space apps (in this case Visual Studio) so you can increase that to Visual Studio and other apps as well... by reconfiguring the boot.ini file...
Add this "/3GB" to it.
2. Remove any unnecessary DLLs or large files from the setup project.
Hope that helps