Hi,
When I tried rendering your file at 2000 pixels wide I found it did sneak up over 2 GB of memory used. If you are using a 32 bit version of Windows, couldn't easily tell from your log, and you haven't done whatever you need to with the /3GB switch ( hazy on that myself, one of the others will hopefully know more about it ) then you could run out of memory as the error is suggesting. That's what has happened, TG2 is unable to allocate any more memory.
Regards,
Jo