Sandboxed SharePoint solution with CRM - The sandboxed code execution request was refused because the Sandboxed Code Host Service was too busy to handle the request".

CRM 2011 on premise using OOB integration with SharePoint 2010

We have an existing sandbox SharePoint solution with event receivers for adding items that works fine when uploading documents into SharePoint from CRM.

Added an itemdeleting receiver to limit user ability to delete certain items from SharePoint. From within SharePoint itself the code runs as expected with users that should not be able to delete certain items receiving the error message that we designated. However, running the same steps for any user within CRM it hangs and the following error occurs:

The sandboxed code execution request was refused because the Sandboxed Code Host Service was too busy to handle the request".

Have read suggestions on updating registry values etc but not sure how that would be helpful. Issue happens in both our development sandbox as well as staging environment.

Suggestions welcome.

Thanks