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Default Out of memory. Why?

I am creating a new spreadsheet from data from another spreadsheet. It is
basically a subtotal spreadsheet but the process of subtotalling is much more
complex because some of the data can be subtotalled and other columns are
just info. So I'm using v-lookup and various other formulas to copy the data
over. The problem is that I've hit a point where Excel has told me:

Excel cannot complete this task with available resources. Choose less data
or close other applications.

I have to say that I don't think that I should be getting this message
because even though some of the stuff that I'm doing is complex there isn't
much data there and I'm always getting rid of the formulas by copying and
pasting the values over the formulas.

Can anyone help?
 
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