Bad_alloc (or bad_aloc - assuming that is really the message, often it is "st9bad_alloc" or "bad_alloc" with two Ls) is a memory problem. Bitcoin can not allocate memory when it needs it. Saying "I've not go memory issues on host" just means that you are not understanding the meaning of the error message. For some reason, it is running out of memory when it goes to allocate memory. It could be something corrupted in your copy of the blockchain or it could just be running out of memory for some other reason (the junk of which 2112 was speaking).
As I asked before, can you run it on a 64 bit system and one with more memory? Was the new VM the same as the old one? I bet that if you created a new 64 bit VM with 4GB you wouldn't see the issue.
e.g.
http://lmgtfy.com/?q=st9bad_alloc