I get that on initializing a bare repository, though there is about 1GB ram available in my remote machine. I’ve also taken a look at git add error : "fatal : malloc, out of memory", but it does not really help.
I don’t understand why this error is created, it seems quite weird. Why does this happen ?
Do you have a directory/file named “config” in your “bare” repo?
See http://www.bitchx.com/log/git-f/git-f-20-Mar-2010/git-f-20-Mar-2010-03.php (mirror)
EDIT: if so, you should almost certainly not be using
git init --bare– bare is meant for empty “server” repositories that you intent to push to, not for initializing a new repo from a working tree.