Error: Out of memory DETAIL: Failed on request of size 8

Hi,
I just installed postgres and postGIS. The following script will create a table of spatial data that is an intersection of two tables (bc_voting_areas and bc_municipality).

CREATE TABLE pg_voting_areas AS
SELECT
ST_Intersection(v.the_geom, m.the_geom) AS intersection_geom,
ST_Area(v.the_geom) AS va_area,
v.*,
m.name
FROM
bc_voting_areas v,
bc_municipality m
WHERE
ST_Intersects(v.the_geom, m.the_geom) AND
m.name = 'PRINCE GEORGE';

I keep getting an error that says:
Error: Out of memory
DETAIL: Failed on request of size 8

Am I running out of RAM?

Help will be highly appreciated.
Thanks in advance.

PS. I don't know if this is relevant. But, work_mem and some other parameters inside postgresql.conf are not set. Here is a portion of the file:

shared_buffers = 32MB
#temp_buffers = 8MB
#max_prepared_transactions = 5
#work_mem = 1MB
#maintenance_work_mem = 16MB
#max_stack_depth = 2MB