After a bit more poking this whole video memory issue is even worse then I thought.
According to Microsoft, since
KB940105 (which includes Win7/8 ), For DX9 and earlier, all
"lockable" video resources are shadowed to the application's address space. So, that's a doubling of any locked managed resource. The application copy (managed) and the WDDM copy. Considering the size of the resources (see earlier graph), it's no wonder X:Rebirth is running out of memory. Savagetwinky said this earlier, but I thought he was alluding to the D3D9 pools when I think he meant this, so my apologies Savagetwinky!
I remember, World of Warcraft had a VERY similar issues about memory usage, LAA and and hitting their Virtual Size Limits. Their solutions were:
1: Implement DX11 version.
2: Create 64 bit client