Assuming you are using the Generic Phone, edit the following file
C:\Program Files\Macromedia\Flash 8\en\Configuration\Mobile\Devices\Generic_Phone.xmland change the line
<device id="8502" width="176" height="208" heap="1024">
to
<device id="8502" width="176" height="208" heap="2048">
Increase the heap value as necessary.
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