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Extra memory

Excel doesn't always load the ENTIRE document into memory when procesessing if it's large. It loads pages in and out (which is why the file gets locked - it's not just for editing you know!).

You can't avoid disk IO when it works like that, so adding anything more than a gig probably won't help.

Best thing is use VBA to bring the data into a memory table, process it and then write it back out to excel. ScreenUpdating helps significantly as well if you don't want to bother with that.
 

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