I said I would keep you posted, so here is what I did, FYI. A bit verbose, but I love to elaborate on things that are important to me, or where I think it might help someone else.
I currently have Moodle 1.4.2+ (2004083129). I downloaded moodle-latest-14.zip file from Moodle to my computer. I found and read the instructions on how to upgrade Moodle. In reading, I found the instructions somewhat complicated, but nevertheless attempted to follow them. I started the process by attemting to transfer the entire Moodle directory from the host server down to my PC via FTP. Half-way through the process, I realized that the amount of files (55 MB) was much too much for me to be willing to wait on, so I canceled the process half way through.
Next, I decided to just use my FTP program to rename the moodle directory to ~.old and then went into the c-Panel and used File-Manager to upload the moodle-latest-14.zip file. That worked, but I couldn't figure out how to unzip it. So I deleted it again.
As a last resort, in remembering that you said, that you had the function: raise_memory_limit() in your moodlelib (lib) file, I used a neat little freeware program, called FreeDiff, a free file comparison tool for Windows 95/98/ME - Windows 2000/NT/XP offered at http://www.SaltyBrine.com to compare the contents of my moodlelib file with the latest one from the moodle-latest-14.zip file. And indeed, my current moodlelib file was considerably different, and it did NOT have the raise_memory_limit() in it.
So, I renamed my current moodlelib file to ~.old and transferred the latest moodlelib file via FTP into the lib directory. And voila, now the cron job runs!!!! So for now, this fix is good enough.
In closing, let me just add that I find a manual upgrade of my current Moodle to the moodle-latest-14.zip too complicated. I am a medical assistant and know how to give injections, and know that a surgeon can operate or approach a complicated integral calculus instead of a renal one! LOL
But here I seem to either lack the technical know-how or unable to understand the technical lingo of how to back up important databases, using MySQL, unpacking new archives, and retrieving my old configurations, etc. Too bad, but I think I can live with the way things are running with Moodle 1.4.2+. 
Monika
dba Danni R.