Sure, to start clean, just delete (or rename) the below directory:
%appdata%\Electrum_SysFiles\0.60
Perhaps some files failed to extract properly the first time?
If you do get that memory error again, please post a screenshot if possible.
I removed the folder and it did re-extract it when I ran it now but it still won't connect. Since I can't even get 0.59 to work anymore I'm pretty sure it's a local problem. Thanks for the suggestions.
Just another thought, can you still create new wallets fine or even that doesn't work anymore?
Also, do you get any error messages if you launch the console (shift-click the executable) then just type 'electrum' ?