Steve, I've been a great fan of SSC for many years, I've used a number of redgate tools and Litespeed to compress some rather large DBs especially when using a...

I don't know why you'd want to go to such lengths to use SSIS, just use Pervasive (formerly Data Junction). It's a far superior way of getting data into SQL.

I agree with last answer, BTW did you check your boot.ini file to enable the extra memory to Windows /PAE?