For the memory settings you have, the client needs to have 2GB RAM. The 
combination of heap size and permgen size is too large for a 1GB machine. 
Windows itself will use up about 1/2GB, leaving only 1/2GB for your app, so you 
will find that the system is doing a lot of thrashing (swapping memory areas 
between RAM and the swap file).

If you are seeing large pauses when using the concurrent collector, you are 
probably running into a full collection because the concurrent collector is 
falling behind on cleaning the heap. If this is the case, it could indicate a 
memory leak in your application. The GC statistics should be able to tell you 
what is going on. 

How many CPUs (or cores) are on this machine? I hope at least 2, but 4 would be 
better. 

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