Error: No memory

[Edgars]

don't know how to fight with this error message. It seems to be 
appearing each time when some user using MSCHAP is connecting (with PAP 
it's ok). The following appears in debug section:

Processing the authenticate section of radiusd.conf
modcall: entering group Auth-Type for request 3
No memory
rlm_mschap: Told to do MS-CHAPv2 for a with NT-Password
rlm_mschap: adding MS-CHAPv2 MPPE keys
.....
Thought that it's a memory fault, but no - changed 128MB to 256MB 
module, the same happens.
Actually it's not bothering the correct authentication process but 
spaming radius.log file.

Any comments on this?
Thanks!
Edgars
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