I'm new to this, I've tried the configure via browser method and initially I've also faced the "memory" problem.
I've solved it by first creating an empty config.lua with:
ssid = ""
password = ""
and then after uploading to the ESP8266 I've compiled the file to config.lc and deleted the original.
done the same to the wifi_setup.lua file
in the init.lua file I had to replace the line:
dofile("wifi_setup.lua")
for
dofile("wifi_setup.lc")
This solved the problem and now is working fine!
Regards
Beep