The first sign of this occured when opening sophos Anti-Virus. The first attachment shows the error given off by Sophos.
While trying a screen shot of some of the errors I found that my clipboard was not even working properly. When I print screened the result that pasted into mspaint was 2 colour B&W.
Now I do not even get that when pasting into mspaint I just get the errors saying "Error getting the clipboard data" and "There is not enough memory or resources to complete operation".
When I goto windows/system32 and open the clipbrd.exe I get the errors shown in the 2nd and 3rd attached images. I have 2 of these to show you the resources and the top memory granted applications.
This is running Windows Server 2003 and I do not wish to reset the system. I would like to first work out why it has done this before resulting to a restart.