That really shouldn't happen if the hardware is working OK. However it's possible that on a 32 bit system, running without the /3GB switch, you are simply running out of memory *for the individual process*, given you have an i7 with between 4 and 6 cores, so 8-12 threads. Sudbiv cache size could be up to 1200MB, and the max any process can get under normal 32 bit Windows is 2GB, so with the rest of TG's memory use that's running dangerously close to running out.
What I'd suggest as a test is to reduce number of render threads to 1 (you can do this in the Renderer node settings, under Advanced, set Maximum Threads to 1), and then set the Size of subdiv cache to 100MB. Then try rendering again. It'll be a lot slower, but if that works, then it tells you it's likely a memory issue.
It's strange to have a machine with 8GB of memory and a 32 bit OS. Hopefully you can upgrade soon.
- Oshyan