Good News and bad news.

Kmplayer doesn't work with the whole file.
Perhaps it takes too much memory as you suggested.
Top command says VSZ is 107M for kmplayer, does it mean that
it uses that much memory with the playlist? Anyhow it doesn't work.

The good news is that the plain old console mplayer works!

mplayer -playlist 99WTV3all.m3u
opens the playlist after a minute
If you remove the first stream it opens even
faster because Vizion plus (the 2nd playlist entry) is
the first working stream. Then I can go to OSD
(N800 lower middle button - menu key?) and select
Jump to... and I can browse the whole playlist.

And it uses much less memory than kmplayer.