This is case 65341881.

This seems to be a regression in 1.4.2 recent releases.
This problem happens only on windows 2000, not even on windows xp.

C:\j2sdk1.4.2_13\bin>java -Xmx1400m -version
Error occurred during initialization of VM
Could not reserve enough space for object heap

C:\j2sdk1.4.2_13\bin>java -Xmx1200m -version
java version "1.4.2_13"
Java(TM) 2 Runtime Environment, Standard Edition (build 1.4.
b06)
Java HotSpot(TM) Client VM (build 1.4.2_13-b06, mixed mode)

C:\j2sdk1.4.2_08\bin>java -Xmx1400m -version
java version "1.4.2_08"
Java(TM) 2 Runtime Environment, Standard Edition (build 1.4.
b03)
Java HotSpot(TM) Client VM (build 1.4.2_08-b03, mixed mode)

C:\j2sdk1.4.2_08\bin>java -Xmx1200m -version
java version "1.4.2_08"
Java(TM) 2 Runtime Environment, Standard Edition (build 1.4.
2_08-b03)
Java HotSpot(TM) Client VM (build 1.4.2_08-b03, mixed mode)

Yumin has a preliminary evaluation on this issue:

"I tested the binary based on this putback and the binary before this
putback --- the result showed after CR 4515367, this problem occured. If
customer filed escalation I could work again on the case to find more
detail information. Now the only finding is the putback caused this
change. 5.0 is not haveing this problem."