OSSMOOTH - License & memory errors

Two questions:

1) Does HW 7 needs to be installed in order to run OSSMOOTH in version 8?

HW/OSS searches for some line in the lic file, which in my case is 0 kB (floating), and returns with an Invalid license file syntax:

Feature: HyperWorks [OptiStruct]

Version: 7.0

License file(s): C:\AltairWIN64\hw8.0sr1\security\altair_lic.dat

Flexlm error: -2

With HW 7 installed it runs fine, however:

2) Are there requirements regarding memory?

This is where it goes wrong:

Reading elements:

3 1D,

0 2D(shell) elements, and

1063027 3D(solid) elements

Reading subcase, psolid, force, spc and material...

Adding DTPL item 106 PSOLID

Adding DTPL item 1 PSOLID

done.

Reading shape file 'X:/x.hm.sh'...done

Creating threshold surface...System Error: Insufficient memory 255126480 bytes not available.

E:\Build\8.0sr1\oss\src_oss\oss_src_1.cpp7848Insufficient memory

Tested this on several different machines (1GB up to 4GB RAM), same error though...