welcome to macosx.com!!
one thing people tend to forget is that classic apps still have set memory allocations. most times it is just a matter of increasing the memory allocation for a particular program just like we have always done. keep in mind that classic, unlike os 9, does not make use of virtual memory.
not sure if this will solve your problem, but it is a good place to start.
20" 2ghz iMac G5 | 2GB ram | os 10.4 | 15" Ti PB 867 | 1 gb ram | os 10.3.9 | grape imacDV 400mhz | 512 mb ram | os10.2.8/9.2.2 | smc barricade router w/sbc yahoo dsl | HP psc-2355 all-in-one printer | graphire2 | Living happily ever after, every now and then