program will not fit into available memory

IMHO the error message is quite clear - you are out of (code space) memory. Or to state it differently, the code space is too small for your application.

There are three possible remedies :

 - optimizing your application (compile with optimization for size enabled)

 - reduce / shorten your application, e.g. throw out debug code

 - use another device with bigger Flash

If you are not in the final stages of your project, it is probably the best choice to go for the last option - a bigger Flash.

PS: albeit I'm not a c2000 user, this issue transcends this controller family. I went through similiar situations with other MCUs during the last years ...

/**************************************************************************************************
    Filename:       buildConfigSrc.opt
    Revised:        $Date: 2007-10-12 17:31:39 -0700 (Fri, 12 Oct 2007) $
    Revision:       $Revision: 15678 $

    Description:    This file contains the Bluetooth Low Energy (BLE) build
                    config options. 

    Copyright 2011 - 2015 Texas Instruments Incorporated. All rights reserved.

    IMPORTANT: Your use of this Software is limited to those specific rights
    granted under the terms of a software license agreement between the user
    who downloaded the software, his/her employer (which must be your employer)
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    Software unless you agree to abide by the terms of the License. The License
    limits your use, and you acknowledge, that the Software may not be modified,
    copied or distributed unless embedded on a Texas Instruments microcontroller
    or used solely and exclusively in conjunction with a Texas Instruments radio
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    the foregoing purpose, you may not use, reproduce, copy, prepare derivative
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    YOU FURTHER ACKNOWLEDGE AND AGREE THAT THE SOFTWARE AND DOCUMENTATION ARE
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/*
    The following is a list of all possible build defines and corresponding options
    that can be set for each define:

    GATT_DB_OFF_CHIP        - Indicates that the GATT database is maintained off the chip on the 
                            Application Processor (AP).

    GAP_PRIVACY             - Applicable to the Peripheral Privacy feature only.
    GAP_PRIVACY_RECONNECT   - The Peripheral Privacy Flag attribute is included in the GATT database 
                            when either of GAP_PRIVACY or GAP_PRIVACY_RECONNECT is defined.
                            - The Reconnection Address attribute is included in the GATT database 
                            when GAP_PRIVACY_RECONNECT is defined.

    GAP_BOND_MGR            - Used to include the Bond Manager

    L2CAP_CO_CHANNELS       - Used to include the L2CAP Connection Oriented Channel support

    GATT_NO_SERVICE_CHANGED - Used to exclude service changed characteristic from GATT Service
                            Note: Either L2CAP_CO_CHANNELS or GATT_NO_SERVICE_CHANGED must be defined
                            exclusively for any project.
    
    HOST_CONFIG             (BLE Host Build Configurations) Possible Options:
        PERIPHERAL_CFG      - Used to include the GAP Peripheral Role support
        CENTRAL_CFG         - Used to include the GAP Central Role support 
        OBSERVER_CFG        - Used to include the GAP Observer Role support 
        BROADCASTER_CFG     - Used to include the GAP Broadcaster Role support 

    HCI_TL_FULL             - All supported HCI commands are available via the Tranport Layer's NPI. 
                            - Intended for NP solution.
    HCI_TL_PTM              - Only those HCI commands needed for Production Test Mode are available 
                            via the Transport Layer's NPI
                            - Intended for SOC solutions where, during production, accesss is temporarily
                            needed (e.g. for PHY testing using Direct Test Mode, etc.).
    HCI_TL_NONE             - No supported HCI commands are available via the Transport Layer's NPI.
                            - Intended for SOC solutions.

    CTRL_V41_CONFIG         (BLE v4.1 Features) Possible Options:
        PING_CFG            - Feature that was added to the Controller to ready it for Secure Connections.
                            It ensures connection authentication is maintained
        SLV_FEAT_EXCHG_CFG  - Feature that allows the Slave to initiate a formerly prohibited feature 
                            exchange control procedure
        CONN_PARAM_REQ_CFG  - LL Topology feature that allows the Master or Slave to initiate a connection 
                            parameter control procedure used to exchange and negotiate not only a change in 
                            connection parameters, but offset adjustments and connection interval 
                            periodicities as well.
        MST_SLV_CFG         - Feature that allows a device to assume both the Master and Slave connection role
                            at the same time in support of more complicated topologies that can be leveraged 
                            by applications and future features, such as Mesh.

    Below is general information for using and/or changing this configuration option file:

    Combo Roles:        Combo roles can be set by defining multiple roles for HOST_CONFIG. The possible 
                        combo roles and HOST_CONFIG defines are:
                        Peirpheral + Observer   :                   PERIPHERAL_CFG+OBSERVER_CFG
                        Central + Broadcaster   :                   CENTRAL_CFG+BROADCASTER_CFG
                        Peripheral + Central    :                   PERIPHERAL_CFG+CENTRAL_CFG
                        Broadcaster + Observer  :                   BROADCASTER_CFG+OBSERVER_CFG

    LibSearch Tool:     There is a pre build action for every stack project that runs a tool 
                        LibSearch.exe. This tool aims to automatically import the correct library
                        files into your project based on the defines in this file.

                        The locations of all library files and their correspond options are
                        <install dir>/Projects/ble/Libraries/CC26xx/IAR/CC2650/bin for stack libs
                        and at <install dir>/Projects/ble/Libraries/CC26xx/IAR/Common/bin for 
                        HCI Transport Layer libs

                        If an library is found that was built with matching options, it will be 
                        copied into the project local directory at <App ewp dir>/../../Lib/ and 
                        subsequently linked with the stack.

                        If you experience a build error with LibSearch.exe, expand the build error 
                        message by clicking Tools->Options->Messages->Show build messages:->All. 
                        The error messages printed out by the LibSearch tool should now appear in 
                        your Build Message window.

    Restrictions:       For CTRL_V41_CONFIG, either all options should be defined or no options should
                        be defined. This is based on the stack library files provided. In order to
                        reduce the number of stack combinations, only libraries with default
                        v4.1 features (for size constrained projects) or with all of the 
                        v4.1 features are provided in the release.
*/

/* BLE Host Build Configurations */
/* -DHOST_CONFIG=PERIPHERAL_CFG */
/* -DHOST_CONFIG=CENTRAL_CFG */
/* -DHOST_CONFIG=OBSERVER_CFG */
-DHOST_CONFIG=BROADCASTER_CFG
/* -DHOST_CONFIG=PERIPHERAL_CFG+OBSERVER_CFG */
/* -DHOST_CONFIG=CENTRAL_CFG+BROADCASTER_CFG */
/* -DHOST_CONFIG=PERIPHERAL_CFG+CENTRAL_CFG */
/* -DHOST_CONFIG=OBSERVER_CFG+BROADCASTER_CFG */

/* GATT Database being off chip*/
/* -DGATT_DB_OFF_CHIP*/

/* GAP Privacy Feature */
/* -DGAP_PRIVACY */
/* -DGAP_PRIVACY_RECONNECT */

/* Include GAP Bond Manager */
/* -DGAP_BOND_MGR */

/* Host Build Options */
-DL2CAP_CO_CHANNELS 
/* -DGATT_NO_SERVICE_CHANGED */

/* Include Transport Layer (Full or PTM) */
-DHCI_TL_NONE
/* -DHCI_TL_PTM */
/* -DHCI_TL_FULL */

/* BLE Core Spec V4.1 Controller Feature Partition Build Configuration. Comment out to use default Controller Configuration  */
-DCTRL_V41_CONFIG=PING_CFG+SLV_FEAT_EXCHG_CFG+CONN_PARAM_REQ_CFG+MST_SLV_CFG

Build_config.opt

I have noticed that the Flash Length in the application .map file is much shorter versus another computer I have ported this project from:

The length is '00008fff'

MEMORY CONFIGURATION

         name            origin    length      used     unused   attr    fill
----------------------  --------  ---------  --------  --------  ----  --------
  FLASH                 00000000   00008fff  00008ff6  00000009  R  X
  FLASH_LAST_PAGE       0001f000   00001000  00001000  00000000  R  X
  SRAM                  20000000   00002cff  00002cb4  0000004b  RW X

on another computer that this project compiles just fine it is ICALL_STACK0_ADDR-1  where   ICALL_STACK0_ADDR=0x00017000 (this is correct)

MEMORY CONFIGURATION

         name            origin    length      used     unused   attr    fill
----------------------  --------  ---------  --------  --------  ----  --------
  FLASH                 00000000   00016fff  000101d2  00006e2d  R  X
  FLASH_LAST_PAGE       0001f000   00001000  00000058  00000fa8  R  X
  SRAM                  20000000   00004667  000038b0  00000db7  RW X

The .cmd and .cfg files under the Tools folder in the Application seem to match the other computer but how come the SRAM Flash length is getting corrupted?

Based on the following line from your .opt file, you are compiling in multiRole capability and other 4.1 features:DCTRL_V41_CONFIG=PING_CFG+SLV_FEAT_EXCHG_CFG+CONN_PARAM_REQ_CFG+MST_SLV_CFG

Are you using / do you need these?

Hello. Please see section 5.8 of the software developer's guide for the .opt file location and description: www.ti.com/.../swru393

That worked for me. Many thanks!!!

These numbers seems somewhat magical though. Are these the only settings, or just optimal in some context.

Is there any reason they should be adjusted at all for a standard 7x7 cc2650?