Well you'll have to check the task manager, there are undoubtedly other processes running on the server. Unless the server is running a 64 bit system then you'll only get a maximum of 2GB anyway unless you have enabled more:
http://support.microsoft.com/default.aspx/kb/823440 (although it's about Exchange it applies in general)
Alternatively look at processing using XmlReader if possible.
--
Joe (
Microsoft MVP - XML)