A 178 MB file is pretty large... for an HTML file, which is plain text!
Try splitting up the file into multiple logical chunks (by chapter?) and importing them separately.
Alternatively, where did you get that file from? If it was a Word export-as-filtered-html, don't do that -- the Editor can directly import DOCX.
The Editor's DOCX conversion is far better than the trash MS Word calls filtered HTML.
...
Another thing, you are using a 32-bit calibre on 64-bit Windows. Do yourself a favor and uninstall calibre, then install the 64-bit version.
(None of your settings will be lost.)
64-bit calibre can access more RAM than 32-bit calibre -- which is good when you are dealing with an Out Of Memory error!