This week's book giveaway is in the OO, Patterns, UML and Refactoring forum. We're giving away four copies of Refactoring for Software Design Smells: Managing Technical Debt and have Girish Suryanarayana, Ganesh Samarthyam & Tushar Sharma on-line! See this thread for details.
In the 1G one you have -Xms and -Mmx reversed; mx is the max.
Try increasing the PermGen space? How many classes are there?! It might be helpful to include the entire stack trace/build output to help pinpoint what's going wrong, and during what--I mean, I'm compiling a half-million line project without having to increase the memory settings, so something's probably configured wrong.