Bluepheonix,
Redshift gave you one possible scenario for not getting enough air at a depth of 42 meters (almost 140 feet). If the manifold was not opened all the way, there would be a restriction that could cause the scuba to not give enough air at that depth, especially under high demand as you began an ascent.
But there is another possibility--the regulator itself. There are a couple of things to check on the regulator:
--Regulator setting: some regulators have a knob which can be cranked down to increase breathing resistance. If her regulator had such a feature, check to see whether it was at its easiest or hardest setting. If it was at its hardest setting, the increased effort of breathing under high demand and at 42 meters (140 feet) could have caused her to think it was not delivering the air she needed (which would have been correct). To see whether this is correct, have use a manometer to check breathing resistance.
--The sintered filter (the filter at the back of the regulator): check to see whether it is corroded. If it is, then there is a possibility of restricting air flow at depth.
--Internal corrosion: Check to ensure that the internal mechanisms are free of corrosion.
--If this was a rental regulator, get that same regulator and have it tested for breathing resistance. (I doubt it was a rental, but figured I would mention it just in case it was.)
In short, check both the valve position possibility and thoroughly check the regulator. In order to get her back into the water she needs to have confidence in the gear she is using.
Best wishes for your and your buddy's future diving.
SeaRat