ACT 2012 - Not enough storage to process this command

Also, tried removing and recreating his preferences and that did not work either.

Try this:
http://kb.sagesoftwareonline.com/app/answers/detail/a_id/27438

If that doesn't help:
At what point do you get this error?
How big is the ADF file for your database?

Typically this means not enough disk space in either the drive that his data resides, or a temp directory the app uses.

It's not ACT, it's Windoze and you need to add or increase the value of IRPStackSize in the registry: http://blog.rongabriel.com/not-enough-storage-is-available-to-process-this-command/

Sorry, I missed the bit about you having re-built the prefs...

A couple of questions:
1. Does this error happen after a specific function? If so, what?
2. If you can replicate the error, can you try on the demo database?
3. Is it a single user with local database or on a network share?
4. Are you using the TopLine Dashboard addon?
5. How big is the ADF?
6. What exact build of ACT! - from Help | About

@GLComputing
1. and 2. This error happens randomly when using the program without a definite way to reproduce the issue outside of constant use of the item.
3. This is a single user using a network shared database that other users access who are also not having issues
4. Never heard of it so I'd assume we don't use it unless we run standard, however, we do use an addon called DialIT that integrates to our TAPI system.
5. The ADF file is 569MB and is the middle of the three databases running on the sql server.  The Server has a 1.4GB ADF, the 500MB, and a 50ish MB databases on it.,
6. Exact version is Sage ACT! Premium 2012 Version 14.1.108.0

I'm unable to forcefully replicate the issue on demand as it only happens to him periodically.  He closes ACT, reopens, and it works without issue for an hour or two.

@Davis, I've tried the IRPStackSize registry entry and moved it to 22 as recommended by several other sites to resolve the issue but this did not work either.  The link you posted also says max is 50 however.

@dlethe, There are no quotas on either the server or the client and the database is set to auto-growth at 10MB.  I've also cleaned out his standard temp folders as well as his HistoryQueue folder (his ACT temp folder for emails and attachments that have not yet been attached or are unparseable).  This does not resolve his issues either and they repeat within the same time frame.,

No function it happens in more often?

Can you see if any errors in Windows event log around the times it happens?
Check server and workstation.

Also, clear out any files in temp folders.

Have you copied a fresh version of the PAD file to his copy?
About 60% of the way down in this: http://kb.sagesoftwareonline.com/app/answers/detail/a_id/13878/related/1/session/L2F2LzEvdGltZS8xMzcyODYyNjUyL3NpZC9haTNNVmh1bA%3D%3D

Up until now, we've always had the .PAD file accessed through a UNC Path and never saved to the local machine.  Even through Folder Redirection, putting the .PAD file into the users Databases folder still puts it onto a server within the UNC path. I've made this change and will continue to keep an eye on it, however, will the UNC location have any problems with it or should I drop it to the true local HDD?

It shouldn't matter where the PAD is ... it's just a Pointer to ACT! Database
You can open it in Notepad

In that case, everyone has been using the same .pad file to point to it. It's been located in the same location as the adf and alf files as well.

Did you clear the temp folders?
Anything in Event Log when it happens?

The only other hit I got reported that the user's Act credentials file had been corrupted and he wound up doing a wipe and reload (yuck)
Have you tried logging into his PC as another, non-admin, user?

Yes, User A, logged in as themselves both under the domain account and ACT account propagated on User Bs machine, while User B also started with the same issues User A had.  When User B received their original machine back, User B stopped having issues, and User A continued to have issues on their old machine.  

In ACT, we've also made a new person, and transferred their data to the new user as well.

So, it's definitely related to the PC, not the Domain account or the ACT! account ...

That's why I like to know of anything in the Event Logs

The difficult part is that we've given him a new computer as well as a swap. Even the new computer is doing it as well. The new machine is having the same problem.

I changed the IRPStackSize from 22 hex to 32 hex and the error has changed.  He's now receiving an out of memory error. Should I tone this back to try and find a happy medium? I've read in a couple sites on this that setting it between 23 hex and 2A hex can cause problems.

IRPStackSize is at 50 and the Storage space error has returned.

Any chance you could get those event logs?

Sorry for not responding sooner, been having issues and working with an ACT consultant who doesn't seem to know what's going on.  Which event logs are you specifically looking for GL?

Application log in the Windows Event viewer

The description for Event ID 1002 from source Application Hang cannot be found. Either the component that raises this event is not installed on your local computer or the installation is corrupted. You can install or repair the component on the local computer.

If the event originated on another computer, the display information had to be saved with the event.

The following information was included with the event:

ActSage.exe
14.1.108.0
b74
01ce8878a0fb7ad0
25
C:\Program Files (x86)\ACT\Act for Windows\ActSage.exe
af57e8ff-f472-11e2-8e49-eca86b9129c9

The handle is invalid