Error occurred during initialization of VM Could not reserve enough space for object heap Could not create the Java virtual machine.

Following settings in setSOADomainENV worked for me

set JAVA_OPTIONS=%JAVA_OPTIONS%
set DEFAULT_MEM_ARGS=-Xms512m -Xmx512m
set PORT_MEM_ARGS=-Xms512m -Xmx1024m

if "%JAVA_VENDOR%" == "Oracle" goto OracleJVM
set DEFAULT_MEM_ARGS=%DEFAULT_MEM_ARGS% -XX:PermSize=128m -XX:MaxPermSize=512m
set PORT_MEM_ARGS=%PORT_MEM_ARGS% -XX:PermSize=256m -XX:MaxPermSize=512m


I have a windows 7 system(32 bit) with 4 GB RAM