Problem: ArcMap runs out of memory after using the Trace tool
This problem is addressed in ArcGIS 8.1 Service Pack 1. See Related Information section to download this pack.
Each time the Trace tool is used, a small amount of memory is not released. This is particulary noticable with densified curves.
After using the trace Ttool many times in a single ArcMap session, the non-deallocated memory may cause ArcMap to run out of memory.
This is a known problem.
Solution or Workaround
The current workaround is to close and restart ArcMap after using the Trace tool a number of times. This will release memory back to the system.