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The situation is that I can import a file successfully. But when i add data to different tables thru functions I get this error. Are their ways to solve this problem. Since Ive seen in other forums that it is a performance/memory issue. But the server has almost 8GB of ram.

what can be the solution to this?

+1  A: 

Is this a 32 bit or 64 bit application? If it is a 32 bit application, you can't access more than 2 GB per default. If it is a 32 bit, large address aware application on 64 bit you can address 4 GB.

For additional info please see this question http://stackoverflow.com/questions/716798/maximum-net-achievable-memory/716806

Brian Rasmussen