i have a OutOfMemory exeption!why?
I think it must be a device limitation of some sort. I have taken your file and renamed it "test.txt" and rendered it using my demo program from the library archive.
My Axim X30 can both render your data and my demo test file with no problems both in the IDE and when optimised compiled. I have noticed before that although an old device running WM2003SE it can happliy run Basic4ppc applications that give Out of Memory exceptions on my other two devices which use WM6.x.
My iPAQ 214 renders both your data and my demo test file with no problems in the IDE but when optimised compiled throws an Out of Memory exception on your data but renders my test file with no problems.
My HTC Diamond freezes, needing a reboot, when I run both your data and my demo test file in the IDE and throws an Out of Memory exception when I run them optimised compiled. It works fine if I shorten my test file, I didn't try shortening yours as it lacks line breaks so I couldn't see the structure of it.
I am afraid that it looks like a different devices have different limitations on the amount of memory, or more likely resources, that are available. You can only try shortening your file. HtmlPanel probably uses a lot more memory/resources than you might think as it uses the .NET XMLDocument class to parse the HTML which builds an in memory tree representation of the XML nodes of the file which HtmlPanel then uses to build a copy of that document tree but using nodes that can render their content.