I have started using Android Studio 1.0.1 and there is nothing I can do as I have this error and even the XML can\'t be rendered.
Error:Unable to start the daemon proces
You might just be out of virtual memory.
You are focused on RAM usage (or lack of) but your existing JVMs are reserving virtual memory, not RAM. As long as reserved pages of memory are not accessed, there is no RAM usage reported for them.
While Linux usually mask this issue by its over-commitment settings, it is quite possible that the fact you are running in an OS level virtualized environment either reduce/disable over commitment or set a virtual memory resource control capping.
On a regular OS instance (not a container), the easiest way to workaround this is to add some swap which will allow the reserved memory not to waste RAM. On a container, the way to overcome the issue might also require increasing the globally available virtual memory but more generally is simply done by granting more virtual memory to the container.
(https://unix.stackexchange.com/questions/109653/java-could-not-reserve-enough-space-for-object-heap-even-though-there-is-enoug)