This sounds very much like thise recent dicussion:
1) How big are your applications? How much memory have you got? If they are really small, you can probably deploy thousands. If the applicaiton is really huge (10s to 100s of thousands of classes) and maintains large amounts of state and services millions of user,s then you can deploy only 1.
2) Based on the JAVAoPTS echoed, max permgen is set to 256M, increase it. You can try 1024M, the JVM will use only as much permgen space as required. Though you might want to monitor actual usage and reduce the maxpermgen accordingly. For example, if you use only 480M of maxpermgen, then set it to 500M or 512M.