I'm not familiar with this error in particular, but had an nasty issue back then with OutOfMemoryException during compile time for a big solution (more than 50 projects)
We used to circumvent it by using msbuild directly but debugging was a bit cumbersome
I checked on internet then and tried to extend the virtual memory that devenv.exe was using (by default it's 2GB).
Being on a 64bit Windows 7, the OS was already complying with the fact that an application could use more than 2GB.
Just had to fire up a command prompt and type :
cd\
cd "C:\Program Files (x86)\Microsoft Visual Studio 10.0"
copy Common7\IDE\devenv.exe Common7\IDE\_devenv.exe
VC\bin\editbin.exe /LARGEADDRESSAW Common7\IDE\devenv.exe
After a reboot, the compilation Exception was just a mere dream.
Note : I read afterward that Visual Studio 2010 was supposed to be Large Address Aware out of the box, so it shouldn't have "solved" my issue, but it did for me.