IE8/MS updates - broke TOAD ?

We’ve been happily using TOAD, and then the IT Support team decided we needed the latest MS updates pushed out.
It seems that IE8 has broken much of the software we rely on, but we can’t go back.

I’ve repaired JInitiator, so we can log into our applications now.
The remaining problem is TOAD.

I keep getting the message “Not enough storage is available to process this command.”

Which I assume is caused by the latest update, as TOAD was working fine the day before.
So I’m wondering what I can do, given that I have to use IE8, to make TOAD work again.

Microsoft has a useless KB article which instructs me to add more memory or increase swap space. But since TOAD ran fine in the past, I think that’s a red herring.

Has anyone else encountered this problem?

PAul