First and foremost, *thanks* for all the replys!
More info on this issue:
My MBP has >= 10 GB free disk space (on a 120 GB drive and I'll be freeing up another 5-10 GB in the next few days), so disk space should not be an issue.
I've cleared the SL cache, i'll try again from time to time. I don't hold high hopes for this "solution" though.
I defrag my MBP once a year or so (DiskWarrior, TechTool Pro), and it shouldn't be needed much with Tiger (only when many files > 20 MB is my understanding). I've been trying to put it off this year until Leopard comes out. Maybe I'll have to bite that bullet when I get a couple of free hours of MBP downtime.
Generally, my MBP runs 24x7, so the Unix maintenance tasks will always run on schedule. That is definitely *not* the problem.
It *seems to me* the problem is either with a bug in the Mac SL client or poor design of the Mac SL client.
Modern applications should be virtual memory friendly and admittedly run slow if RAM is tight, but not crash (short of the swap device completely filling up) for heaven's sake.
I don't want to have to give up multi-tasking to run SL, that is ridiculous (well, ok, *I* think that is ridiculous

I'm hoping this issue is taken care of by the good Linden folks at some point in the future. Although I can live with it now, it's annoying to my SL friends when I just drop off from time to time.
And to be sure, none of the above is intended as a complaint of any of your replies! Thanks for *all* for the replies, they were *all* appreciated.
And I *will* clear that cache from time to time.