I used the version from the link above. When trying to convert the 4 disk game Wing Commander III - Heart of the Tiger, it always fails. It works for about 3 minutes then it just gives up, it says it created the pkg, but it did not.
I tried to create a ps3 pkg with that 4 disk game (SLUS00019) here and it works.
The actual creation of the PKG is not done by pop-fe but it is calling out to the pkg tool in PSL1GHT.
This is the command line it uses to create the PKG:
python3 PSL1GHT/tools/ps3py/pkg.py -c UP9000-SLUS00019_00-0000000000000001 pop-fe-work/SLUS00019 wc.pkg
This is if you use the comamnd line tool. If you use pop-fe-ps3 it will probably be 'pop-fe-ps3-work/SLUS00019' instead.
Can you try running this from the command line and see if you can reproduce it?
You may need to run it normally again first, until you see the text
Create PKG
When this text is printed pop-fe has finished creating the entire directory structure for the game and it is stored in pop-fe-ps3-work/SLUS00019. Try to run it until it prints that text, then abort the program and try running the python command line above to manually create the the PKG.
pkg.py complains that it failed due to a memory error.
How much memory do you you have? It could be that it is running out of memory.
How much free disk space do you have?
I think it is a matter of pkg.py just running out of memory. That line that it fails on is
fileData = fp.read()
which is a line where it tries to read a file into a memory buffer and this causes a memory error.
Are you on windows? Windows have support for virtual memory. Can you try increasing the amount of virtual memory it uses? Say try to increase it by using 5Gb or so more as virtual memory. I can't help here on the exact details as I don't use windows (I can tell you how to do it on linux though) but google should help.
Adding more virtual memory will slow things down a bit but the drawback is that you have more "memory" available and in this case a "slower" experience might be better than a "fails with memory error" experience.