dpkg fails to allocte memory ?

[B Thomas <thomas.1037@osu.edu>]

I get the following error when I try to use dpkg or apt for any purpose install or remove packages :
Selecting previously deselected package netscape-base-4.
(Reading database ... dpkg: error processing /var/cache/apt/archives/netscape-base-4_1%3a4.76-1_i386.deb (--unpack):
 malloc failed (65552 bytes): Cannot allocate memory
 dpkg: failed to realloc for variable buffer: Cannot allocate memory
 E: Sub-process /usr/bin/dpkg returned an error code (2)

While this example is for netscape it happens for any other package to. For instance :

mandelbrot:~# dpkg --purge ipmasq
(Reading database ... dpkg: error processing ipmasq (--purge):
 malloc failed (65552 bytes): Cannot allocate memory
 dpkg: failed to realloc for variable buffer: Cannot allocate memory

 The is a similar bug report :
 #83752: dpkg: Malloc problems?

#85040: during install: failed to realloc for variable buffer:
Cannot allocate memory when --unpack

Does anyone have a work around or patch for this . I would be grateful if you could post ?

Please note I have 128 Mb or ram and am able to run xfree86 and other programs well. 
My memory usage now is :
        total:    used:    free:  shared: buffers:  cached:
	Mem:  130224128 105275392 24948736 18944000 32714752 58531840
	Swap: 222072832   303104 221769728
	MemTotal:    127172 kB
	MemFree:      24364 kB
	MemShared:    18500 kB
	Buffers:      31948 kB
	Cached:       57160 kB
	SwapTotal:   216868 kB
	SwapFree:    216572 kB
My kernel version is 2.2.17 and the dpkg version is 1.6.14 .
Sincerely
Balbir Thomas