If you are having issues with Hybernation in WindowsXP and getting the error "Insufficient System Resources to complete the requested API" and you have 2GB or more system RAM then you are not alone to be hit by this bug. You can get a fix by searching an unreleased and unsupported hotfix by Microsoft. According to them, its still in testing phase and they plan to release it with their next Service Pack. If like me, you don't have the patience to wait till then the you can search for the hotfix
WindowsXP-KB909095-x86-ENU or can download it from
here. Read more about it on Microsoft KB article
here. I haven't seen this error again after installing this hotfix, and unsupported one but works for sure. Cheers!