The phone's memory is full, which causes the error message and lock ups. This error prevents you from freeing up memory by deleting messages.
Try the following (taken from the Nokia support forum):
http://discussions.nokia.co.uk/discussions/board/message?board.id=hardware&thread.id=7775
1. Delete unused names/numbers from the address book to free up memory. (Perhaps write down the ones you want to keep for later re-entry)
2. Once a critical threshold is reached the msg inbox indicator will blink on
3. Enter inbox and DELETE as many messages as you can before phone freezes up again
4. If phone freezes or you get the error message again, restart and keep deleting from the phone book until it allows you hassle-free msg inbox access as per normal (but don't forget to continue deleting thos messages).
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