We get the above error when we try to download the site for offline use. We are using the application 'Webcopier' for this purpose. During the download process if there is a problem on a certain page due to bad url or a code problem, the VM consumption of DLLHOST process starts increasing. It reaches to a level of about 1.8 GB before killing the process and restarting it.
The above error is thrown on the browser page, if the site is accessed during this period and if the User has unchecked 'Show me friendly HTTP message' box in the IE.
Our server is WIN2K, with a shared database on SQL 2000. CPU 2.4, 1 GB RAM and 2 * 40 GB HDD