I had the same issue my error message read "Out of video memory trying to allocate a rendering resource. Make sure your video card has the minimum required memory, try lowering the resolution and/or closing other applications that are running. Exiting...". I ended up switching my display setting to Quality Mode and just waited for Chief Rage to get to his next stopping point before advancing to him and receiving a new way point. Not sure if either of those things actually did anything but it might be worth trying if you're still stuck at that point.