If Internet Connection sharing is enabled on a Windows 7 installed machine, a user may encounter 2 events similar to the following in the Windows System Event Log after the system comes out of sleep or hibernate.
Description: The DNS proxy agent was unable to allocate 0 bytes of memory. This may indicate that the system is low on virtual memory, or that the memory manager has encountered an internal error.
The two Events described in this article do not indicate any problem with the operating system nor do they cause any functionality issues with Internet Connection Sharing. These events can be safely ignored as they are incorrectly logged because a request to allocate zero bytes memory is invalid.
For more information on Internet Connection Sharing, please reference the link below: