This error might be from a bug within the beta 1.08 agk version. I was wanting to have a collection of blocks side by side in a certain space. When I have 50x50 there is no error and the game runs really smooth, when I have 50x50x30 then I get an exception that has no description of the exception (just an error message box with uncaught exception). I am running this app on a high performance computer so I couldn't have imagine that my computer would run out of memory (8 GB). I do have a fairly big texture on the blocks and also have a normal map on it too, I will try to shrink the texture size and see what happens also with reducing the amount of blocks to see where it starts showing that exception. Thank you for anyone that could help, but I think this is a bug.
sov the game creator!