Smart Group Causes Fatal error: Out of memory, Unable to delete Smart Group

After creating a smart group I started experiencing problems. The smart group is pretty typical. It did use custom data in its criteria. Upon creating the smart group, I got an error message when trying to view the Smart Groups contacts (Fatal error: Out of memory (allocated 116129792) (tried to allocate 261900 bytes) in /home/kibbl/www/www/includes/errors.inc on line 1973). I cannot view the Smart Groups contacts, edit Smart Group criteria, or delete the Smart Group. I am able to disable the Smart Group and change its name. In addition to not being able to view the contacts in the Smart Group, I am not able to view the contacts of the group that was associated with the Smart Group. From the Manage Groups menu, I click on the group's contacts. I get this error message (Fatal error: Out of memory (allocated 116391936) (tried to allocate 32 bytes) in /home/kibbl/www/www/sites/all/modules/civicrm/packages/PEAR.php on line 884).

I feel like if I could somehow delete the Smart Group that seems to be causing the problem the issue would be fixed. I do not know how to do this due to the error when clicking the delete option. I still have the ability to create Smart Groups that function. I have no idea why this one failed. I have contacted tech support and they were unable to fix the problem. "We tried increasing the memory but it still fails, and we did eventually also get a DB error "Deadlock found when trying to get lock; try restarting transaction" which is somewhat unusual. Our conclusion is that either this is a bug in CiviCRM or for whatever reasons, this particular Smart Group is very complicated and requires a lot of resources to run. Could be a combination of these factors as well."

Upgrading to CiviCRM version 4.0.7 did not resolve the issue.