Is the storage space allocated referedto on my PC or the server?

If it is on my PC how do I increase it?

It refers to neither the Host, nor the Server. Instead, this is an indication that the WU has so many Spikes, Triplets, and Gaussians that work is being stopped, and this fact alone is being sent to the servers. S@H has always had this behavour, but it is more explicitly shown in the BOINC version. There are four possibilities for this WU. The first is that is the birdie signal that berkeley injects at a specific frequency in order to test the system. The second it that it is pure noise generated by a teresterial source. The third is that it is from a stelar radio source. The last is that it is an ET candidate, but the other three will be investigated first as being by far the most likely. This is done to avoid wasting any of your CPU time and berkeley's storage on a very unprommising signal. If the first three cannot be eliminated, I suppose that it will be placed on the list of places to look at again.