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PSoC Designer needs more memory than a simple 8-bit compiler because it also provides for chip design features but it does not need a lot more. I do not know your system, whether you run Windows native, how much memory you've got and what kind of CPU you are using but I can tell you that much, on my 8 year old Athlon XP with 1.5 GB of DRAM Designer runs just fine.
When the processing icon stays on, in most cases you've got a background virus checker doing it's thing. So, Designer might not run on a 256 MB DRAM but it does not need a high end computer either.