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16 bit subsytem is similar to an emulator. When you run an old dos or win95 (16 bit)application it creates a virtual 16 bit environment for the program to run in. The program assumes it is running on the appropriate operating system. The error indicates that the subsytem is either not configured properly for the program or it may never correctly run on xp.
If you know which program it is referring to right click on the programs shortcut and reconfigure the environment for more memory to be allocated. The error you have recieved usually indicates not enough memory. Not always though.
Archived topic from Iceteks, old topic ID:1998, old post ID:16458