Comment 15 for bug 461992

"This is fairly serious, but it may "already" be solved by upgrading to
the latest bzr with the latest repository format. (Though you probably
won't be able to do the upgrade with a 700MB VM.)"

This is correct. I tried upgrading the repository format to 2a today and even on a Linux box with 2 GB of memory, bzr got an "out of memory" exception. So it looks like we're stuck with the 1.14 version of the repository until there is a way around this. I tried this using bzr 2.0.2 from the official bzr PPA.