in a private message Justin also included the control output below. From that we can parse that his merged input file to lasheight contains 764,142,862 points of which 197,475,187 are ground points. For lasheight to work this would require now to build a TIN surface with around 200 million vertices and 400 million triangles which will take way more Gigabytes than a 32 bit application can allocate and which also will be slow because the TIN would be a rather large search structure to find the triangle above which each point is located. The secret to efficient LAStools processing is to operate spatially coherent *BUFFERED* tiles of around 5 to 15 million points.
Executing: lasheight-classify "D:\LAS Merge\LAS_Merge11.las" # "ground (2)" # # "low point (7)" -10 "low vegetation (3)" 0.5 5 "medium vegetation (4)" 5 10 "high vegetation (5)" 10 100 "building (6)" 100 las "C:\GIS Databases\PSEG Viewshed - Bethpage\LAS Dataset\LAS Reclassified\LAS_Merge11_Reclass" "C:\GIS Databases\PSEG Viewshed - Bethpage\LAS Dataset\LAS Reclassified" # # true
Start Time: Wed Oct 18 16:43:44 2017
Running script lasheight-classify...
Starting lasheight ...
Found C:\Users\jeddings\Downloads\LAStools\LAStools\bin ...
Found C:\Users\jeddings\Downloads\LAStools\LAStools\bin\lasheight.exe ...
LAStools command line:
"C:\Users\jeddings\Downloads\LAStools\LAStools\bin\lasheight.exe" -v -i "D:\LAS Merge\LAS_Merge11.las" -class 2 -classify_below -10 7 -classify_between 0.5 5 3 -classify_between 5 10 4 -classify_between 10 100 5 -classify_above 100 6 -olas -o "C:\GIS Databases\PSEG Viewshed - Bethpage\LAS Dataset\LAS Reclassified\LAS_Merge11_Reclass" -odir "C:\GIS Databases\PSEG Viewshed - Bethpage\LAS Dataset\LAS Reclassified"
first pass. reading 764142862 points to count ground points ...
took 1417.92 sec. counted 197475187 ground points.
ERROR: cannot alloc point_buffer for 197475187 points.
Error. lasheight failed.
Completed script lasheight-classify...