From Autodesk:
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Issue
Attempting to print to a locally connected printer fails with the following error:
Memory Allocation Error
Note: You might still be able to print from other applications.
Solution
This error can occur if more than one printer shares the same port name (for example, LPT1) through a cable splitter or a switchbox. Check with your hardware vendors for a way to assign independent port names for each printer.
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Issue
You have a HP DesignJet plotter or printer configured on your network. However, you are unable to plot, or print, to that device. When you try to plot to the HP DesignJet an error message is displayed. Following are typical error messages that are displayed:
Memory Allocation Error
Internal Error: Unexpected Unknown Exception
The plotter configuration cannot be used; either the driver cannot be found, the device cannot be found, or the driver has a problem. The None plot device has been substituted.
You were not having any problems until you installed the HP Optimize driver from the Mechanical Desktop 4 installation disk.
Solution
To work around this problem, follow these steps:
On the taskbar, select Start > Settings > Printers > Add Printer.
Select My Computer and then click Next.
Select one of the LPT ports then click Next.
Follow the onscreen prompts to complete the Add Printer Wizard.
On the taskbar, select Start > Programs > Command Prompt to go to a MS-DOS command prompt.
Use the NET USE statement at the MS-DOS command prompt. For the following example, the LPT3 port was specified and the network printer resides on the system named "SERVER" with the share name of "PRINTER".
NET USE LPT3 \\SERVER\PRINTER\ /persistent:yes
Note: The "/persistent:yes" switch is used so the system will restore the NET USE command each time you reboot the system.
Hope this helps.