I've never encountered this error myself. I assume you mean you have 1 GB of RAM not 1 MB.
The error sounds like SQL Server does not have enough available memory and is not related to changing the skin.
1 GB should be sufficient unless you have a lot of sites or very high traffic or other things running on the machine. I would not install Visual Studio on a machine like that for example.
If you only have IIS and SQL EXpress and not much more on the machine then possibly there is some configuration limiting the ram available to SQL server.
Hope it helps,