Any known SQL Server 2008 Management Studio memory leak issues?

I'm not sure whether this question belongs here or to StackOverflow. I'm attempting here, since my question is in regards of memory leaks and management stuff more than programming.

I have a SQL script which I attempt to run and everytime the server response is:

No sufficient memory to complete this query (that is the main idea, not the exact message)

Now, the script has more than 50 000 rows to insert like the example below:

1=>

insert into Cities ([Name]) values (N'MyCityName')

2=>

insert into Sectors ([Name], [Description], City_CityId)(
    select N'FirstSector', N'1at Sect. Desc.', c.CityId 
        from Cities c 
        where c.[Name] like N'MyCityName')

3=>

insert into Streets ([Name], Direction_Value, Type_Value, SectorId, City_CityId)(
    select N'1st Street', 0, 10, s.SectorId, c.CityId
        from Cities c
            inner join Sectors s on s.City_CityId = c.CityId
        where c.[Name] like N'MyCityName' 
            and s.[Name] like N'FirstSector')

4=>

insert into Addresses (StreetNumber, NumberSuffix_Value, UnitSuiteAppt, StreetId, SectorId, CityId)(
    select 999, 0, N'', st.StreetId, s.SectorId, c.CityId 
        from Cities c
            inner join Sectors s on s.City_CityId = c.CityId
            inner join Streets st on st.SectorId = s.SectorId and st.City_CityId = c.CityId
        where c.[Name] like N'MyCityName'
            and s.[Name] like N'FirstSector'
            and st.[Name] like N'1st Street')

5=>

insert into People (Surname, FirstName, IsActive, AddressId)(
    select N'TheSurname', N'TheFirstName', 1, a.AddressId
        from Addresses a
            inner join Cities c on c.CityId = a.CityId
            inner join Streets s on s.StreetId = a.StreetId
        where a.StreetNumber = 999
            and a.NumberSuffix_Value = 0
            and a.UnitSuiteAppt = N''
            and c.[Name] like N'MyCityName'
            and s.[Name] like N'1st Street')

So, I have the number of each instruction as follows:

1=> 2;

2=> 5;

3=> ~700;

4=> ~35000;

5=> ~35000;

Executing those thousands of instruction will drive me to the unsufficient memory issue. And while I open Task Manager, I have SSMS necessitating more than 400MB of RAM.

My configuration is as stated below:

Lenovo W700ds
2x320GB HDD 7200RPM RAID 0
4GB RAM DDR3
Intel Core 2 Quad 2.0GHz 6MB L2
Windows 7 Professional 64bits (/w all updates)
SQL Server 2005 Express services running 
    (That is my data server, I'm not using 2008 for this project)
SQL Server Management Studio 2008 Express 
    (SP3 installed /w all updates)

I only have SSMS2008 application running while executing the inserts instructions.

Any thoughts to render this situation doable either by system optimization or other updates are greatly appreciated.