Thank God someone at Microsoft has finally fixed this. I just wish the fix was more publicly available, but Jeff Atwood explains what it is and how to get the fix:
If you ..
- use Windows XP SP2 of any flavor
- have 1+ gigabytes or more of system memory
- use hibernate functionality
.. you may have experienced this error at some point when attempting to hibernate:
"Insufficient system resources exist to complete the API."
Check out the post.