Apple TV2 unresponsive after exiting XBMC

I have had to reboot and do a tethered boot twice in a row after trying to run XBMC.

It seems as if the device is running out of memory and is hanging. The device has 104MB free memory out of the total 247MB

The only resolution is to disconnect power and reboot which is frustrating

Streaming music (via airplay) also stutters when loading XBMC.

I originally installed aTV Flash (Black) and then installed ALL software options in the maintenance menu (such as XBMC, PLEX, nitroTV, LAST.FM). Could the device be low on memory as a result and should I not install all software?