Hi,
It looks like your notebook has an Intel HD 3000 video card which is below the minimum requirements. There have been many reports by users on this topic, it seems the HD 3000 either barely works, or does not work at all with UE4. The main reason for this is that the card only has 64mb of dedicated memory (total shared is around 1.5gb). Also your laptop has a total of 4gb of ram which is shared with the video card, Windows requires a portion of as UE4 + video memory, causing you to run out of memory.
Here is a response from UE Dev Michael Trepka on using the HD 3000 recently:
“Intel HD 3000 is below minimum system requirements for UE4 and at the moment the editor is totally unusable on this card. UE4 renderer apparently hits some extremely slow code path in the driver, even on simplest scenes, but so far we weren’t able to narrow it down. We’ll keep investigating and hopefully at some point you will be able to use HD 3000”
I would recommend updating to the latest drivers from Intel for the video card and see if that helps. Also when creating a new project make sure to set the scalability settings to low and try again. But you may need to upgrade your computer if this does not help.