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Sql 2005 memory error

I installed sql 2005 standard edition o windows 2000. sql server is running fine but having problems with the report server..when i try to do a query which results large number of rows, the system throws an out of memory exception. i even tried installing the service pack 1 but it gives me an error at the time of installation "setup cannot access the sql server with the authentication you supplied".
I have been using the windows authentication for both report server and sql server.. In the configuration manager also, database setup and report server is running all right.
I checked the ‘eventvwr" and services.msc..in these applications, the status of report server is "started" i have installed the sql on the local machine. pls help
on the first item,
figure out if the error is on SQL Server, ie, the backend process
or the front-end, formerly QA, now Management Studio? there should be no reason for an error on the back-end,
there can easily be an error on the front-end, which must have contigous address space to receive the rowset,
consider changing the query to reduce the rowset, what were you planning to do with the results anyways?
or failing that, get a new 64-bit system
i have got a 64 bit system only.
I need to generate the reports for our clients
We have got huge tables on which we perform some sort of aggregation.
Each table has about a million rows. We need to generate reports out of these tables,export it to excel and finally email to our clients..
I really need your help in finding the solution.. thanks
you have not answered the question of whether this is front end or back end problems excel can only handle 64k rows, so you need another solution
besides, such row counts in excel is silly try selecting the results into a table, then export the table to an access db
well i guess the problem is not with the backend because the same query runs correctly in management studio.. i think its the size of the memory(may be virtual) which is giving problems..

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