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To followup from The buffer manager failed a memory allocation call for 20485670 bytes, but was unable to swap out any buffers to relieve memory pressure blog post, here are few findings that I would like to share. When you see that SQL Server instance...
It is evident that SQL Server 2005 component handles memory differently as compared to SQL Server 2000 version. As one of the KBA refers SQL Server 2000 Enterprise Edition introduces support for the use of Microsoft Windows 2000 Address Windowing Extensions...
In general it is not a best practice to perform SHRINK database operation on a production server, atleast regularly! Sometimes it may be compulsory to keep them sized in order to ensure the disk storage is not compromised for any sudden changes to databases...
A newbie or FAQ within Forums and Newsgroups that having multiple instances and how best to set the resources on the server such as memory, CPU etc. Read more from here.