which Eclipse version? Do you use the WebToolsPlatform plugin (part of e.g. the Eclipse edition "for JavaEE developers"), or do you use e.g. the JBoss Tools plugin?
If you use the WebToolsPlatform plugin, then open the launch configuration of your server. Here you should see VM arguments. Check the memory settings.
For me (JBoss 5.0), the are like this:
"-Dprogram.name=run.bat -Xms128m -Xmx512m -XX:MaxPermSize=256m"
Maybe you have to increase them.
Hope this helps
I am using Eclipse Helios for Java J2EE. Yes, you are correct. I was missing the last character in "-Xms128m" that made all the difference.
Thanks a bunch