I have been constantly running out of memory when trying to merge .package files. I know the Compressorizer helps, but I obviously don't know enough to undo whatever made my C drive full. I reckon this has something to do with the importing because deleting the merged package doesn't help free space in my C drive. Can anyone help with this problem?

"Memory" and "disk space" are two different things, and your post makes it a bit vague which is which. Are you getting some sort of "out of memory" exception from S3PE when trying to merge packages? If you're merging a TON of stuff at once, that will happen. Don't merge -everything- at once. Merge in batches. It also makes it easier to figure out which file(s) are the problem if it errors about something else.

Deleting the merged files isn't going to free up space unless you empty your recycle bin, too. An "out of memory" error from S3PE doesn't mean anything about disk space.

After you deleted them, did you empty the recycle bin?

How much free space do you have left? There are various things you can delete which tend to get huge - such as the temporary files for your internet browser of choice - and there are also programs like Treesize which can help you find any particularly big files or blocks of files, to help you decide what to delete.

You really need at least a few Gigs free - partly so you can do regular maintenance stuff like defragging, and partly because when your computer runs out of RAM (which it will, particularly when playing TS3), it uses the hard drive as temporary RAM, so not having enough free space HD space will impact performance ingame and cause lags, slow loading/saving etc.

ETA: Ofc, as HP says, this all assumes that your C drive actually is full.

I merge my files in batches around 280MB. I get the running out of memory error from S3PE and my hard disk is left with only a few MBs left everytime I try to merge packages. I defrag, delete temporary files and unneeded stuff (including files in recycle bin of course) everytime this happens but it does not really help.

Currently I have 3.76GB free. I clearly know that I had around 190GB of free space in my C drive before I started merging packages. Oh, and my TS3 is clean because I reinstalled everything. Does this post show a clearer view of my problems?

This is such a bummer I am contemplating to have my laptop formatted.... Ugh.

Don't format your laptop.

When you import the .packages into s3pe, click No when the program asks you if it should automatically save the imported package, because it'll create multiple temp files during the importing process which takes up lots of disk space. This space will be freed up when the importing is done. However, if the importing fails (due to the fact that the load is heavier than your RAM can handle) these temp files won't be deleted, and you'll have to look for them in C:\Users\[your username]\AppData\Local\Temp (if you're using Windows Vista or 7. I can't remember exactly if that's the correct path though). Their filenames are usually a combination of numbers and letters. When you open that folder, just sort by size and delete the hugest ones, or sort by date created and delete (most likely) the most recent ones.

I usually import no more than a total of 250MB worth of packages just to make sure the program won't crash. So you should try to import in small batches like that.

Just type %TEMP% in the run bar and then delete all files in that location.

OH TEMP FILES. I thought disk cleanup would do its thing but it didn't work.
Got rid of all those junk!! Didn't know importing would create temp files.

Thanks people! I really appreciate the help!