Quartus II 7.0 System requirements

It's not compiiling issue.

I installed Quartus II 7.0 in 512Mb without any problem, although I barely move one opened object in it.

Better check your system. Since you had same problem on different machine, your package maybe corrupted.

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Hardware requirements/recommendations

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Pentium III or later for Windows or Linux

or

Sun UltraSPARC-based Workstation for Solaris

Memory requirements/recommendations

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A full installation of the Altera Complete Design Suite version 7.0

requires approximately 5 GB of available disk space on the drive

or partition where you are installing the Altera Complete Design

Suite and approximately 30 MB of available space on the drive that

contains your TEMP directory (Windows only).

The Quartus II Stand-Alone Programmer requires a minimum of 1 GB

of RAM plus additional memory based on the size and number of SOF

files and the size and number of devices being configured.

Altera recommends that your system be configured to provide swap

space (virtual memory) equal to the recommended physical RAM that

is required to process your design.

The following table shows the memory required to process designs

targeted for Altera devices:[/b]

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--Quartus II readme.txt