Chosen Solution
Old hard drive failed. Ordered new Toshiba 320 GB hard drive and installed. Attempted to install OS X on new drive. Cannot erase or partition drive. I get the error: Cannot Allocate Memory.
Check your SATA cable connections - it’s possible you may need to replace the SATA cable if you damaged it taking out the old HDD. If this answer is acceptable please remember to return and mark it.
