Could not reserve enough space for object heap to start JVM
It looks like the machine you're trying to run this on has only 256 MB memory.
Maybe the JVM tries to allocate a large, contiguous block of 64 MB memory. The 192 MB that you have free might be fragmented into smaller pieces, so that there is no contiguous block of 64 MB free to allocate.
Try starting your Java program with a smaller heap size, for example:
java -Xms16m ...
According to this post this error message means:
Heap size is larger than your computer's physical memory.
Edit: Heap is not the only memory that is reserved, I suppose. At least there are other JVM settings like PermGenSpace that ask for the memory. With heap size 128M and a PermGenSpace of 64M you already fill the space available.
Why not downsize other memory settings to free up space for the heap?