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There are several internal settings to consider when you use the CacheToDisk property of the ActiveReports Document object. 

The CacheToDisk property tells ActiveReports whether to move report resources to IsolatedStorage instead of holding it in memory. With this property set to False, all memory is used to store resources. If the CacheToDisk property is True and the CacheToDiskLocation property is not set, the default location in which it caches resources is IsolatedStorage, so you must have IsolatedStorageFilePermission in order to use it. The cache capacity for IsolatedStorage may depend on your configuration, but does not exceed 3 GB.

To avoid using IsolatedStorage, you can specify a folder in the CacheToDiskLocation property. For an example of the code used to turn on CacheToDisk and specify a folder, see the CacheToDiskLocation property in the Class Library documentation.