Yeah, you should be able to run the game. I'll work on a patch to reduce the memory requirements again.
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I've never seen that Java error before. There's only supposed to be one save file, but I'm thinking having two copies of the game open caused the files to duplicate/get corrupted. Delete all the save data files and start over. If these weird crashes keep happening, I'd recommend deleting all the files and re-downloading the whole thing.
In the command line, try the same command but without the slash in front of Users.
"Unable to access java file" means you typed in the path wrong- the part you were supposed to replace "full/path/to/game" with. The path to the file will probably lead to somewhere in your downloads folder. What did you type instead there?
I've never heard of a crash during play- crashes during loading as you described are common, but unless you're using the Koopalings, nothing loads while matches are playing. The memory used should stay constant throughout a match.
If the game crashes, the music will continue to play until the error goes away and the game closes. If it's still playing after the game is closed, something is very wrong. Are you sure you actually closed out that first SSBS.jar file?
What are the java error codes? Sure, you don't understand them, but I might, and I can't troubleshoot if you don't tell me everything.
Are you saying that the game crashes when you go into the options menu? I can't think of any reason why that would happen, unless you deleted the font files or your save file. The most likely explanation is that having two copies of the game open made one version of the game modify the save file while the other version was using it... but still, that's pretty weird.
The game is using barely any memory because you ran it outside of the launcher. Launching through the SSBS.jar file runs the game in the default memory for Java, which is lower than what the game needs to run - hence why matches don't load.
The launcher should be reading the amount of memory left on your computer, but I've found that different computers don't report their available memory accurately. I haven't tested the launcher with an Acer Aspire, so this is probably the issue. Still, it could actually be a problem with the amount of memory you have available...
Try running SSBS.jar through the command line using this command:
java -Xmx1024 -jar /full/path/to/game/SSBS.jar
...with the path to where you put the file replacing the placeholder text. If the game runs properly with that code, that means that the launcher is bugged.