[R] k nearest neighbours

[Angel Lopez]

I want to
1) Select for each of the n points in a matrix A, those of the m points 
in B that lay within a given radius.
2) Of those points within the radius, select the k nearest ones.

What I now do is
1) Create an n*m matrix C were I put the distances from all the points 
in B to the points in A and make NA those cells were the distance is 
larger than the radius. (The points are geographical locations so I use 
function rdist.earth in package fields) e.g.:
library(fields)
data(ozone)
A<-cbind(ozone$lon.lat[1:10,])
B<-cbind(ozone$lon.lat+2)
C<-rdist.earth(A,B)
radius<-180 # The search radius
C[which(C>radius)]<-NA

2) Then I make NA everything but the k nearest ones
k<-5 # The nearest neighbours
rank<-function(rank){rank<-sort.list(sort.list(rank,))};
C[which(apply(C,2,rank)>k)]<-NA;

My problem is that the code is quite slow and due to the need to create 
a n*m matrix I run out of memory many times. I would also prefer to get 
a C matrix that is n*k instead of n*m were each of the values in C 
indicated the row in B were the corresponding knearest point would be.
But I can not find a way to solve my main problem which is the need to 
create a n*m matrix.
Thanks for any clues,
Angel