https://bugs.freedesktop.org/show_bug.cgi?id=28869
--- Comment #2 from Marek Olšák maraeo@gmail.com 2010-09-11 21:26:33 PDT --- The DRM errors are fixed by this kernel patch, which will hopefully end up in 2.6.36: http://lists.freedesktop.org/archives/dri-devel/2010-September/003830.html
Beware, Tiny and Big hardlocks if your GPU is too slow. This is fixed by this kernel patch (the hardlocking, not the slowness): http://lists.freedesktop.org/archives/dri-devel/2010-September/003829.html
Both patches are awaiting a review, and I can't say for sure whether the "1/2" one will get accepted.
Regarding the out of memory error, is there anything in dmesg? I can't reproduce it.