I\'ve always been able to allocate 1400 megabytes for Java SE running on 32-bit Windows XP (Java 1.4, 1.5 and 1.6).
java -Xmx1400m ...
Toda
I got this error message when running a java program from a (limited memory) virtuozzo VPS. I had not specified any memory arguments, and found I had to explicitly set a small amount as the default must have been too high. E.g. -Xmx32m (obviously needs to be tuned depending on the program you run).
Just putting this here in case anyone else gets the above error message without specifying a large amount of memory like the questioner did.