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Out of System Memory

I got a message "The application "X" has unexpected quit (out of system memory)", after I  
launched the program from a previously saved-application.  

The message was a result of opening three databases written in C.  All together, three  
databases need about 12K.  I have 8M RAM on IIci, supposedly enough for the task.   
What's wrong with the independent application?  How to increase the system memory?

Sheldon Shen