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This problem is addressed in ArcGIS 8.1 Service Pack 1. See Related Information section to download this pack.
Running the Integrate command against large feature datasets may return this message:
Stream in Progress
ArcMap is not releasing a small amount of memory for each feature processed in the Integrate operation. When processing a large number of features, ArcMap may run out of memory before the Integrate command can finish.
To avoid this error: