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FWIW, I can second your sense of being mystified by this behavior, which (at least for me) is new to CS4. I've got 4 GB of RAM (running on Vista), I've assigned a separate internal disk (with 200 GB of empty space) as a scratch disk, yet when I try to use the Quick Selection tool on not terribly large files (I'm looking at the bottom of my screen where it says Doc: 95.1M/261.9M) I consistently get the "could not complete your request because there is not enough memory" error when I use the Quick Select tool.
I've got CS4 set at the default 70% memory allocation, so that really should not be the problem? Adobe, are you out there listenting???
I received this message from Adobe Tech Support. It actually worked for me. Give it a try...
Many factors can cause conflict between applications. For example,
corrupt user preferences can cause conflicts. Try resetting them. You
can do this by following solution three of the below document. If the
above solution does not resolve the issue, try following solutions four,
five, eight and 10 of the same document. Copy and paste the web address
below into your browser.