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Hmmm...
I'd love to see the reports then, as using a 32x Java that argument worked perfectly fine.
What I DID accidentally do was use the Xms argument instead of the xmx, however JVM was smart enough to set min/max to that. It worked perfectly after that. I'd love to see if I can maybe help with this project.

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Okay I managed to reproduce and further investigate the error so uploaded a new version with improved error handling. There is now a .bat file attached to launch the game with 1 GB limit. Thank you very much for helping me out!

No problem, glad to help out.