I\'ve always been able to allocate 1400 megabytes for Java SE running on 32-bit Windows XP (Java 1.4, 1.5 and 1.6).
java -Xmx1400m ...
Toda
Sun's JVM needs contiguous memory. So the maximal amount of available memory is dictated by memory fragmentation. Especially driver's dlls tend to fragment the memory, when loading into some predefined base address. So your hardware and its drivers determine how much memory you can get.
Two sources for this with statements from Sun engineers: forum blog
Maybe another JVM? Have you tried Harmony? I think they planned to allow non-continuous memory.