ARIBA Buyer Application crashes with HotSpot1.3.1 server option turned on

HotSpot 1.3.1 with server option turned on causes Ariba Buyer application to crash.

To reproduce:

Machine name: etcsys3
IP address: 192.29.209.142 (this is on SWAN)
root password: ariba
                                                                                
Once you log in to etcsys3, you need to su to the ariba user:
#su - ariba
                                                                                
After this, you should be in the /opt/ariba705 directory. In this
directory you have the CoreServer directory and other scripts to start
the Ariba server:
                                                                                
-killprocs: kills all processes owned by ariba user
-startAriba: starts the Ariba server
-startTibco: starts Tibco. If using Tibco, this script must be run
first before the startAriba script. Wait for Tibco to initialize
fully, and then run the startAriba script.
                                                                                
To modify the memory size and JVM arguments, change directory into the
config directory of the CoreServer:
$/opt/ariba705/CoreServer/config
                                                                                
Within this directory you should see a Parameters.table file. This is
the file to modify to change the memory size and JVM arguments. If
you vi the Parameters.table file and then search for the word Java,
you should see the entry: JavaMemoryMax, JavaMemoryStart,
JavaVMArguments, etc. The VM arguments need to be in quotes.
azeem.jiva@Eng 2001-07-11