peddler,
mesh creation requires even more RAM than dense point cloud creation. When you want to create a meshed model, Photoscan will first compute depth maps, then a dense point cloud, and finally start meshing - only to find out at that point (after some hours) that it can't do it.
That's why I have stopped working with high quality meshes and use Photoscan mostly to create dense point clouds (using file >> export points) and process the point clouds in external software. Also, when working with Photoscan I always look at RAM usage - of course, Windows will use the swap file on the hard disc, but that makes processing so slow that there is no point letting it run.
As I have said, creating dense point clouds may still work for projects that would require much more RAM for meshing. But for large projects and/or ultra quality settings, RAM becomes a limiting factor even for creating dense point clouds. And at least at this point I think it would be relatively easy to change the software to require less RAM.