When that happens, the easiest solution that has been tested on both Windows XP, Windows 7 and Windows 8 is:
Open the Control Panel
Go to System
Go to Advanced Systems Properties
Then Environment Variables
In System Variables, click Add
New Variable Name: _JAVA_OPTIONS
New Variable Value: -Xmx512M
That's it, your Java program should now be able to execute properly.
For those interested, Java -Xmx/s is the configuration parameter that control the amount of memory Java uses.
Xmx sets the maximum heap memory size
Xms sets the minimum heap memory size