This week's book giveaway is in the Mac OS forum. We're giving away four copies of a choice of "Take Control of Upgrading to Yosemite" or "Take Control of Automating Your Mac" and have Joe Kissell on-line! See this thread for details.
Please use the Code button. I presume the >< is a misprint; I have seen it before.
You are using 100 * 10 * 128 * 1024 * 8 (= 1.048576e9) bytes at least if you use longs and 1.31072e8 bytes for bytes, ie just under 1GB for one and just under 128MB for the other. Now you can work out how much memory you have at your disposal . . .
Each byte/long has 10*1024*128 = 1,310,720 different array values. In scenario 2 each element takes 1 byte, therefore the total is 1,310,720 bytes or 1.25MB. In scenario 1 each element takes not 1 but 8 bytes, therefore the total is 8 * 1,310,720 = 10,485,760 bytes or 10MB.
Now alone this shouldn't cause an OutOfMemoryError. However, you are creating up to 100 (no idea what value max has) of these arrays. For byte that is 125MB. For long that is 1000MB, nearly 1GB.