I am trying to read a 2.5GB txt file into my application. I am running Win7 x64 and have 43GB of mem available (out of 64GB). I tried playing around with -Xmx -XX:MaxParmS
You should look into the -Xmsn option for the java command.
It specifies the initial size of the memory allocation pool.
Edit: I see you've already done that.