When downloading files from an online service, an "Out of Memory" or "Not Enough Disk Space" message may appear. If you have enough memory and disk space, the issue is most likely that the file header, which contains information about the file size, is being read incorrectly by the File Transfer Tool.
This issue is particularly prevelant among GIF (Graphic Interchange Format) files, which were probably uploaded originally by CompuServe Navigator version 3, and have a corrupt MacBinary header.
The solution is to use a method other than MacBinary. If you are using the XModem Tool, try MacTerminal. If the file is a text file or you know that it contains only a data fork (this is true of ClarisWorks documents, not true of applications or extensions), Straight XModem will also work. Use XModem Text if you are downloading a text file that was created on a computer other than the Macintosh (with the exception of Claris Windows products). The Kermit Tool which comes with ClarisWorks 2.0 is another recourse.
The XModem 1.1 tool which ships with ClarisWorks 2.0 is more robust in its error checking of MacBinary headers and will greatly reduce this issue.