I\'m using PHPStorm under Win7 64bit with 64bit Java (latest version I guess) and working currently on an insanely big and chaotic project
Make sure that PhpStorm use 64-bit Java and not bundled one (which is 32-bit). You an check that in Help | About.
Generally speaking: with 64-bit Java you do not have to change that value as it works a bit differently compared to 32-bit one.
1) PhpStorm comes with bundled x86 Java and it is the first one that it tries; only then it looks for other Java installations -- check PhpStorm.bat for details (what environment variables and in which order). By defining one of those environment variables (which will point to your 64-bit Java installation) you can tell PhpStorm to use instead of bundled one.
2) PhpStorm v8 (currently in EAP stage) comes with 64-bit specific files: you should use PhpStorm64.exe and not PhpStorm.exe (same for .vmoptions file -- it should be PhpStorm64.exe.vmoptions).
I'm not sure how PhpStorm v7 works with 64-bit Java -- have never tried it this way myself.
Selecting the JDK version the IDE will run under
https://intellij-support.jetbrains.com/entries/23455956-Selecting-the-JDK-version-the-IDE-will-run-under