The provider ran out of memory

When I try to open excel file, I get the following error(the same is if i try it with linked server):

SELECT *
FROM OPENROWSET('Microsoft.ACE.OLEDB.12.0', 'Excel 12.0;Database=c:\Temp\excelFile.xlsx', [Sheet1$])

The OLE DB provider "Microsoft.ACE.OLEDB.12.0" for linked server "(null)" reported an error. The provider ran out of memory.

The same problem is also with some other stuff. My version is:

Microsoft SQL Server 2008 (SP3) - 10.0.5500.0 (Intel X86)   Sep 22 2011 00:28:06   Copyright (c) 1988-2008 Microsoft Corporation  Standard Edition on Windows NT 5.2 <X86> (Build 3790: Service Pack 2) 

So, sql2008 on 32 bit windows server 2003.

I have minimum server memory 0, maximum 4000 and "Use AWE to allocate memory" is enabled.

So, SQL has enough memory available. Where is the problem?

If i run DBCC MEMORYSTATUS, I get a lot of result sets. Which one is appropriate to look for? The first one is:

Memory ManagerKB
VM Reserved 1750772
VM Committed 1709996
AWE Allocated 0
Reserved Memory 1024
Reserved Memory In Use0

br, Simon