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Have you seen this before when trying to shutdown or hibernate/standby - especially if you have a laptop with more than one gig of RAM then this could be your solution.

Mine was so bad I would throw it in my bag and it would bounce between on and off states then basically overheat in the bag when it was trying to keep everything running.

Install this update to fix a situation where the computer does not hibernate and you receive an "Insufficient System Resources Exist to Complete the API" error message. After you install this item, you may have to restart your computer.

Link to MS KB Article