Answer
You need to make some room on the AR, by deleting some of the codes already on it.
OK, I am not going to remove this persons above answer, but put a strike-through it to show that for my research that suggestion has been tried and not helped any people that I know of since the message usually has nothing to do with the memory. I am going to put the previous answer I had found up again since I was so thrilled to finally find something that worked. I had to spend weeks researching to find this answer to help my 7 year old son get his action replay to stop saying "not enough memory" when there was all ready nothing on it . I can't tell you how frustrating it is to find that someone actually changed my answer back to the answer that many people have been frustrated to find seems to be the only answer anyone has to the not enough memory problem. So once again, 99 out of 100 time the following is usually what has happened and taking the following steps will most often take care of the problem.
I was elated to finally find this: You might have accidentally turned off your console while saving so you need to reset your console:
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