If heap size set too low then you will get "out of memory" errors. If you set it too high then your system will hang or you will suffer poor performance because PARTS of the jvm will be swapped in and out of memory. A rule of thumb is that you should not set this parameter larger than about 80% of your free PHYSICAL memory. On Windows XP MACHINES you can determine your free physical memory from the Performance tab of the Task Manager APPLICATION. 

Boosting the heap size parameter will allow you to read in larger file-based projects. It will also improve the performance of the DATABASE back-end since more memory is available for caching.In Java Set the maximum heap size, using the -Xmx command-line option, to a value that allows the application to run with 70% occupancy of the Java heap.The Java heap occupancy often varies over time as the load applied to the application varies. For applications where occupancy varies, set the maximum Java heap size so that there is 70% occupancy at the highest point, and set the minimum heap size, using the -Xms command line option, so that the Java heap is 40% occupied at its lowest memory usage. If these values are set, the Java memory management algortihms can modify the heap size over time according to the application load, while maintaining usage in the optimal area of between 40% and 70% occupancy.

If heap size set too low then you will get "out of memory" errors. If you set it too high then your system will hang or you will suffer poor performance because parts of the jvm will be swapped in and out of memory. A rule of thumb is that you should not set this parameter larger than about 80% of your free physical memory. On Windows XP machines you can determine your free physical memory from the Performance tab of the Task Manager application. 

Boosting the heap size parameter will allow you to read in larger file-based projects. It will also improve the performance of the database back-end since more memory is available for caching.In Java Set the maximum heap size, using the -Xmx command-line option, to a value that allows the application to run with 70% occupancy of the Java heap.The Java heap occupancy often varies over time as the load applied to the application varies. For applications where occupancy varies, set the maximum Java heap size so that there is 70% occupancy at the highest point, and set the minimum heap size, using the -Xms command line option, so that the Java heap is 40% occupied at its lowest memory usage. If these values are set, the Java memory management algortihms can modify the heap size over time according to the application load, while maintaining usage in the optimal area of between 40% and 70% occupancy.