If the memory_limit is alright, then it's probably a memory limitation on the process (either apache or php). Put the following code in a file and open it's URL in the browser. You should then get an output of memory limits for the running process (if it's a linux box)
The problem has been fixed. I had to up the apache memory to 150MB and then it accepted the save and publish. Wow I cannot believe Silverstripe use this much memory. I use it extensively saving and updating pages everyday, please advise on why this would be, and would this increase the more I use Silverstripe. This is the feeling I get from this error that it would increase the more I use Silverstripe, could this be a bug in v2.3.3?