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SQL 2008 R2 SP3 Event ID Error 701 Insufficient memory Please Help!

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I don't have much experience with SQL Servers.  I have a small office running a SQL Server and the software being run on the network/server, recently became very unstable, slow and crashes.

The server is pretty new with dual XEON processors and 12GB of ram.  Also have plenty of disk space.   When I check the event view, there are errors 701.  I looked this up online and read about updating the SQL 2008 R2...  I updated to SP3 and still have the same issue. 

When I monitor the usage, the SQL server uses 10-20% CPU and 1.5GB of memory.   I read something about System Cache but have no idea how to clear this. Or anything else I should do.  Any assistance would be greatly appreciated.

Thanks!


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