In addition to the subject message, your System event log records:

Event Type: Error
Event Source: NTDS
Event ID: 1450
User: N/A
Computer: <SERVERNAME>
Description: Insufficient system resources exist to complete the requested service.

This behavior will occur if the SQL database is larger than 4 gigabytes AND you had installed the 316430 - Performance of Microsoft Commerce Server-based Programs May Degrade Over Time hotfix.

To resolve this problem, uninstall the hotfix, using Control Panel / Add/Remove Programs.