This could/would happen if you use the “DOS Command” option from the NewViews shell.
Instead, you must open an MS-DOS/Command Prompt window. Assuming you are using Win 2K or Win XP:
Click ‘Start’, then click ‘Programs’ or “All Programs’, then “Accesories’, then ‘Command Prompt’.
This should open a DOS window with enough memory to run the reorg.
P.S. Follow Henry’s advise 1st – DO A BACKUP!