MSMQ: What can cause a "Insufficient resources to perform operation" error when receiving from a queue?

If journaling is enabled, you will be storing copies of all messages removed from the queue, so you might also be hitting the MSMQ journal limit. Short term fix might be to purge the journals for the queue, longer term - disable journaling.

I encountered the same error, after checking the things mentioned above it turned out that it was the computer name that was causing the issue! It was longer than 15 characters, after I changed it to a shorter one the issue was gone.

For me, the problem was not the machine that hosted the queue. It was the machine that was sending the message to the queue. I noticed that the "Outgoing Queues" on the source machine showed large numbers of messages, which led me to MSMQ Messages Are Stuck In The Outgoing Queue. Reinstalling MSMQ on the source machine is what fixed it for me.