On some Windows 95 machines, you can get the message Out of environment space when starting a ULC-based application. Ensure that your environment is large enough by editing the Shell entry in the config.sys file as follows:
SHELL=someDisk:\somePath\command.com /P /E:2048
/E: specifies the maximum size of the environment. Ensure that the path someDisk:\somePath is valid on your machine.