As a general rule, DO NOT restore an Archive from one robot onto another, unless you really know what you're doing. If all you want is the programs, then just copy/paste those module files.
The error might be RAM-related rather than storage. But RAM is limited by VxWorks, and the physical RAM needs to meet VxWorks requirements, so typical PC RAM is a crapshoot, and using the extra RAM requires risky tinkering with system config files.
How large is the /KRC/R1 directory on the hard drive? How large are these programs you're trying to import?
I modified the VxWorks settings and was able to restore the files successfully. Regarding the difference in KSS versions, everything seems to be working fine so far, as I only restored the program files, and they were restored without any issues.