The Win 16 Subsystem has insufficient resources to continue running.
Click on OK, close your applications, and restart your machine.
There is little point in trying to run the original Quake application, since
so many improvements have been made in the modern open-source versions
available. For instance, try this:
http://equake.quakeworld.nu/
Your CD will, however, come in handy to provide the data files (specifically
the contents of the id1 folder).