MySQL gives "Out of Memory" error when inserting a large file. From where is this filesize limitation arising?
I saw an interesting answer to a question about the biggest blob you may have

Here is the statement I saw in ServerFault

innodb_log_file_size and innodb_log_buffer_size combined must be larger than ten times your biggest blob object if you have a lot of large ones

I did not see any InnoDB Settings in your my.cnf

I see you disabled the InnoDB Built-in and you plugged in another InnoDB

See if you can adjust innodb_log_file_size and innodb_log_buffer_size to accommodate.

Since you only have 4GB of RAM reserved, try making your InnoDB Log Files Much Bigger

Change innodb_log_file_size to 1G in /etc/my.cnf


service mysql stop
sleep 30
rm -f /var/lib/mysql/in_logfile[01]
service mysql start (recreates ib_logfile0 and ib_logfile1)


Give it a Try !!!