I've had the texture memory cap at 8 megs for a long time, and this map only uses 1.4.
Also
It works ok for me, but pay attention to the "larger than expected texture" errors, maybe they are buggering your compile?
That message in the log was from one of your wads D:
None of the textures I'm using are bigger than 256^2 [any bigger and you get that warning, but even so, it's safe to use textures as high as 512^2 or 1024x256]
Edit: Looks like it's working with the newer tools. I guess this is what I get for not updating my compile tools since 2002. Thanks Captain.