Dave,
I do not know why should Lookout increase the system hive when Lookout is running regularly with a process application.
The only part Lookout is somehow related to the system hive is during installation. Lookout installer register its services (LKAds, LKCitadel, LKTime, and in Lookout 5 probably Lookout used as NT Service). This installation would increase the system hive a little bit. However, I've installed Lookout 5 and 4.5.1b18 and my system hive is as you said around 2-3 MB and I have not seen it growing when I was using Lookout.
If you could reproduce and see that this system file is growing it might be interessting to know if you do something special in your process application. (E.g. DDE Exchange, OPC Servers...).
Let me know if you attache an exampl
e that reproduces the system hive grow.
Regards
Roland
PS: More about this growing file: e.g.: http://scilnet.fortlewis.edu/tech/NT-Server/registry.htm#Hives
PPS: If you encounter this problem - for sure it would be good to know why - but maybe you could increase the registry max file setting thus the system would not freeze - or what do you mean by "fried", a crash (Would you have a stack dump?)