http://bugs.winehq.org/show_bug.cgi?id=3007
------- Additional Comments From wijn@wanadoo.nl 2005-28-05 05:09 -------
: Cannot allocate memory <<<<<<<<<<
That means just what is says: wine asks for memory that is not available. And yes that has changed around that time in that respect.
So make sure you have enough memory, check that there is no "ulimit" on the amount of memory that a process can ask for and perhaps do a "echo 1 >/proc/sys/vm/overcommit_memory"