This message is telling you that the Shared Pool does not have enough memory. So you will need to increase the SHARED_POOL_SIZE parameter in your INIT.ORA and restart your database.
If you are running Oracle 8i, then there is a known, common bug, which exhibits itself as the ORA-4031 error and increasing the size of the Shared Pool does not fix the problem. This problem has been fixed in Oracle 126.96.36.199 and Oracle 9i. If this pertains to you, then an upgrade may be in order.
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This was first published in July 2003