grep -r doesn't work for me

I'm using grep 2.5.1 (Cygwin), which is the latest version of gnu grep I can find for Windows.  I'm also including the part of the help text that explains the usage of the -r (recursive) switch:
 
  -R, -r, --recursive       equivalent to --directories=recurse
      --include=PATTERN     files that match PATTERN will be examined
      --exclude=PATTERN     files that match PATTERN will be skipped.
      --exclude-from=FILE   files that match PATTERN in FILE will be skipped.
 
My problem is that it just doesn't work for me.  (I'm using XP SP2.)  When I use the -r switch, I get a 'Not enough space' error.  I have no idea what space it's run out of - I should have plenty of memory available, and the same for disk space (if it needed it for swapping, whatever).  Any help would be greatly appreciated.

->grep --version
grep (GNU grep) 2.5.1
 
Copyright 1988, 1992-1999, 2000, 2001 Free Software Foundation, Inc.
This is free software; see the source for copying conditions. There is NO
warranty; not even for MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.

->grep -rl --include=*.ini Change
grep: (standard input): Not enough space

I've created an alias in my command processor (4nt) language, that will go through each folder, and then execute the regular grep command "grep -s -c -m 1 [string search pattern] [file pattern]" and check to see if it returns at least one match.  If it does, it prints the current directory and then executes the full grep command "grep -H [...]" so I see the results.  This works fine, but I'd rather figure out what I'm doing wrong above with the -r switch.

->alias rgrep
global /iq if %@execstr[grep -s -c -m 1 %$] GT 0 (echo.%+ echo %=>%=>%=> %_cwd: %+ grep -H %$)
 
->rgrep Change *.ini
 
>>> C:\WIP\VESTA\Installer\TargetFiles\Common\Demo\INIs\DemoDBs\M1:
VESTA.ini:ChangePasswordLevel=10
 
>>> C:\WIP\VESTA\Installer\TargetFiles\Common\Demo\INIs\DemoDBs\Pallas:
VESTA.ini:ChangePasswordLevel=10
 
>>> C:\WIP\VESTA\Installer\TargetFiles\Common\Demo\INIs\DemoDBs\Standard:
VESTA.ini:ChangePasswordLevel=10