As I pointed out before, log clearly tells about the problem i.e. "Invalid initial heap size". I am not sure what is wrong there but certainly this is the cause of the problem as reported by Java executable. Does your system have enough RAM? Try removing the -Xms and -Xmx VM arguments all together, run Tomcat and if it goes beyond this point add them correctly. Also paste the part of the script where these two are defined.

Could not create the Java virtual machine.
Invalid initial heap size: -Xms256m -Xmx512m -Dofbiz.home=E:/ofbiz

Fatal error:
Target VM failed to initialize.

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