What is the impact of changing the index creation memory setting in SQL Server?
Basing my assumptions off this question, your error message seems to indicate to me that you need to set "index create memory" to [1024 * DOP].  The error also seems to indicate that your DOP is set to 2, so if I were you, I would set index create memory to 2048KB(as stated in the error message) and see what happens.

If that doesn't work, I would try reducing the minimum memory per query and setting index create memory to [minimum memory per query * DOP](assuming you don't change DOP).