Memory is cheap so get another 4 gig of ram and plug into computer.
...you'll need to run the 64 bit version of W7 to use more memory.
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If your layers in Photoshop document are fairly complex, then working with them frequently can be little tough keeping in mind that you're using both Photoshop and your OS as 32-bit only. Photoshop will use some portion of the scratch disk as its virtual RAM when it is out of memory using its available memory that you have set for Photoshop in its preferences. The hard drive spaces left in your C drive may fall short depending on the page file size you've set for Windows becasue Photoshop expands an image to its actual resolution when it is opened in Photoshop/placed in Photoshop layer, thus taking up a lot of memory depending on the size and resolution of the image.
Make sure no other programs are running in the background along with Photoshop. If you're working with a dual monitor, try disconnecting one of the monitors and see if that resolves the issue. Keep the history/ clipboard clean. Frequent saves will help in this matter.
Thank u so much the replys......:-)