That's what I tried to solve with the posted bat files. I limited the allocated memory to 256MB.
I used XP, the very same java, and allowed Windows to only use 1gig for the whole system!
1gig is even lower than what his system has.
I could try it again with the smallest possible memory amount minecraft is still able to run with...
EDIT: Just for funs sake I limited Windows XP (yes the whole system) to 512MB and the GPU to 128MB... Minecraft still ran...
EDIT2: Trying with
256MB RAM and
64MB GPU memory... hang on...
EDIT3: Yes it's unbelievable, but Minecraft runs and runs and runs. It doesn't even crash, not once.
I wouldn't call the performance great though, it freezes from time to time for a very short time, but nothing dramatic. Magic...
EDIT4: That above was done running MC in 640x400 screen size (default), but as soon as I switch into fullscreen mode it badly slows down. Still running though... and not a single crash yet.
EDIT5: I asked on a tech forum if anybody fully understands the log and what exactly causes it. I even got a ticket from oracle. If anybody knows why, then those guys from oracle. Could need a couple days though.