MSMQ Adapter -Cannot peek message contents

We are using
wM IS 6.5 Build No: 394
Java Version 1.4.2_07 (48.0)
MSMQ Adapter version 6.0.0

Connection Management Properties :
Enable Connection Pooling true
Minimum Pool Size 0
Maximum Pool Size 5
Pool Increment Size 1
Block Timeout (msec) 10000
Expire Timeout (msec) 60000
Startup Retry Count 2
Startup Backoff Timeout (sec) 10

We are getting two different errors
ERROR: Queue Exception. Private:peekMsgfromQueue. Unable to peek the queue.
Error while PEEKING the Queue.

The exact error is
[ART.117.4002] Adapter Runtime (Adapter Service): Unable to invoke adapter service msgHandlers.MSMQ:peekMsgFromQueue.
[ADA.660.1084] Cannot peek message contents.
(null). Error Code = 80020009

Connfac = %lastError/pipeline/connFac%

and

ERROR: Queue Exception. Private:peekMsgfromQueue. Unable to peek the queue.
Error while PEEKING the Queue.

The exact error is
[ART.117.4002] Adapter Runtime (Adapter Service): Unable to invoke adapter service msgHandlers.MSMQ:peekMsgFromQueue.
[ADA.660.1084] Cannot peek message contents.
Not enough storage is available to complete this operation. . Error Code = 80020009

Connfac = %lastError/pipeline/connFac%

We are unable to peek the messages from the MSMQ queue until we bounce the wM IS.

Do you know what might be causing this error.

Your response would be greatly appreciated.

-Pauly