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This error occurs when using the Merge themes script, or when merging themes through the Geoprocessing Wizard:
(vrec) No Free Channels error
You have exceeded the processing resources of your computer, which are based on memory and swap space.
A channel is an ESRI system resource that declares x number of channels in memory. In most cases channels refer to the number of file handles available for the system to use. Most functions in ArcView, such as bitmaps or data selections, have 30 channels declared.
Do the processing in smaller increments, such as merging 3 themes at a time instead of 10.
When merging through Avenue, use the anAppl.PurgeObjects request to release memory.