Error launching Embedded WLS

JDeveloper Team,
I am unable to start the embedded WLS. I was following the steps highlighted in the tutorial http://www.oracle.com/technology/obe/obe11jdev/11/ejb/ejb.html. When I execute step 19 (run Session Facade), I get the following error. I also reinstalled JDeveloper and tried to start the server using "Run -> Start Server Instance". Please help.
Thank you,
Bala Raman.
C:\mywork\system11.1.1.0.31.51.56\DefaultDomain\bin\startWebLogic.cmd
[waiting for the server to complete its initialization...]
JAVA Memory arguments: -Xms256m -Xmx512m -XX:CompileThreshold=8000 -XX:PermSize=48m -XX:MaxPermSize=128m
WLS Start Mode=Development
CLASSPATH=;C:\oracle\fwm\patch_wls1030\profiles\default\sys_manifest_classpath\weblogic_patch.jar;C:\oracle\fwm\patch_jdev1111\profiles\default\sys_manifest_classpath\weblogic_patch.jar;C:\oracle\fwm\patch_cie660\profiles\default\sys_manifest_classpath\weblogic_patch.jar;C:\oracle\fwm\JDK160~1\lib\tools.jar;C:\oracle\fwm\WLSERV~1.3\server\lib\weblogic_sp.jar;C:\oracle\fwm\WLSERV~1.3\server\lib\weblogic.jar;C:\oracle\fwm\modules\features\weblogic.server.modules_10.3.0.0.jar;C:\oracle\fwm\WLSERV~1.3\server\lib\webservices.jar;C:\oracle\fwm\modules\ORGAPA~1.5/lib/ant-all.jar;C:\oracle\fwm\modules\NETSFA~1.0_1/lib/ant-contrib.jar;C:\oracle\fwm\jdeveloper\modules\features\adf.share_11.1.1.jar;;C:\oracle\fwm\WLSERV~1.3\common\eval\pointbase\lib\pbclient57.jar;C:\oracle\fwm\WLSERV~1.3\server\lib\xqrl.jar;;
PATH=C:\oracle\fwm\patch_wls1030\profiles\default\native;C:\oracle\fwm\patch_jdev1111\profiles\default\native;C:\oracle\fwm\patch_cie660\profiles\default\native;C:\oracle\fwm\WLSERV~1.3\server\native\win\32;C:\oracle\fwm\WLSERV~1.3\server\bin;C:\oracle\fwm\modules\ORGAPA~1.5\bin;C:\oracle\fwm\JDK160~1\jre\bin;C:\oracle\fwm\JDK160~1\bin;c:\oracle\11g\client\bin;c:\oracle\xe\app\oracle\product\10.2.0\server\bin;C:\WINDOWS\system32;C:\WINDOWS;C:\WINDOWS\System32\Wbem;;;c:\jdeveloper\main\ant\bin;c:\sun\java\sdk\jdk1.5.0_15\bin;C:\maven\bin;c:\tools\unxutils\usr\local\wbin;c:\Program Files\TextPad;C:\subversion;C:\oracle\fwm\WLSERV~1.3\server\native\win\32\oci920_8
* To start WebLogic Server, use a username and *
* password assigned to an admin-level user. For *
* server administration, use the WebLogic Server *
* console at http:\\hostname:port\console *
starting weblogic with Java version:
java version "1.6.0_05"
Java(TM) SE Runtime Environment (build 1.6.0_05-b13)
Java HotSpot(TM) Client VM (build 10.0-b19, mixed mode)
Starting WLS with line:
C:\oracle\fwm\JDK160~1\bin\java -client -Xms256m -Xmx512m -XX:CompileThreshold=8000 -XX:PermSize=48m -XX:MaxPermSize=128m -DproxySet=false -Djbo.34010=false -Xverify:none -da -Dplatform.home=C:\oracle\fwm\WLSERV~1.3 -Dwls.home=C:\oracle\fwm\WLSERV~1.3\server -Dweblogic.home=C:\oracle\fwm\WLSERV~1.3\server -Ddomain.home=C:\mywork\SYSTEM~1.56\DEFAUL~1 -Doracle.home=C:\oracle\fwm\jdeveloper -Doracle.security.jps.config=C:\mywork\SYSTEM~1.56\DEFAUL~1\config\oracle\jps-config.xml -Doracle.dms.context=OFF -Djava.protocol.handler.pkgs=oracle.mds.net.protocol -Xms1024m -Xmx1024m -XX:MaxPermSize=256m -Dweblogic.management.discover=true -Dwlw.iterativeDev= -Dwlw.testConsole= -Dwlw.logErrorsToConsole= -Dweblogic.ext.dirs=C:\oracle\fwm\patch_wls1030\profiles\default\sysext_manifest_classpath;C:\oracle\fwm\patch_jdev1111\profiles\default\sysext_manifest_classpath;C:\oracle\fwm\patch_cie660\profiles\default\sysext_manifest_classpath -Dweblogic.Name=DefaultServer -Djava.security.policy=C:\oracle\fwm\WLSERV~1.3\server\lib\weblogic.policy weblogic.Server
Error occurred during initialization of VM
Could not reserve enough space for object heap
Could not create the Java virtual machine.
Process exited.
C:\mywork\system11.1.1.0.31.51.56\DefaultDomain\bin\stopWebLogic.cmd
Stopping Weblogic Server...
Error occurred during initialization of VM
Could not reserve enough space for object heap
Could not create the Java virtual machine.
Done

I tried the set EXTRA_JAVA_PROPERTIES="-Xms256m -Xmx512m". Still it doesn't work.
I am getting
java version "1.6.0_07"
Java(TM) SE Runtime Environment (build 1.6.0_07-b06)
Java HotSpot(TM) Client VM (build 10.0-b23, mixed mode, sharing)
Starting WLS with line:
C:\sun\JDK16~1.0_0\bin\java -client -Xms256m -Xmx512m -XX:CompileThreshold=8000 -XX:PermSize=48m -XX:MaxPermSize=128m -Xms256M -Xmx512m -DproxySet=false -Djbo.34010=false -Xverify:none -da -Dplatform.home=C:\oracle\MIDDLE~1\WLSERV~1.3 -Dwls.home=C:\oracle\MIDDLE~1\WLSERV~1.3\server -Dweblogic.home=C:\oracle\MIDDLE~1\WLSERV~1.3\server -Ddomain.home=C:\oracle\MIDDLE~1\JDEVEL~1\system\SYSTEM~1.56\DEFAUL~1 -Doracle.home=C:\Oracle\Middleware\jdeveloper -Doracle.security.jps.config=C:\oracle\MIDDLE~1\JDEVEL~1\system\SYSTEM~1.56\DEFAUL~1\config\oracle\jps-config.xml -Doracle.dms.context=OFF -Djava.protocol.handler.pkgs=oracle.mds.net.protocol -Xms1024m -Xmx1024m -XX:MaxPermSize=256m "-Xms256m -Xmx512m" -Dweblogic.management.discover=true -Dwlw.iterativeDev= -Dwlw.testConsole= -Dwlw.logErrorsToConsole= -Dweblogic.ext.dirs=C:\oracle\MIDDLE~1\patch_wls1030\profiles\default\sysext_manifest_classpath;C:\oracle\MIDDLE~1\patch_jdev1111\profiles\default\sysext_manifest_classpath;C:\oracle\MIDDLE~1\patch_cie660\profiles\default\sysext_manifest_classpath -Dweblogic.Name=DefaultServer -Djava.security.policy=C:\oracle\MIDDLE~1\WLSERV~1.3\server\lib\weblogic.policy weblogic.Server
Could not create the Java virtual machine.
Invalid initial heap size: -Xms256m -Xmx512m
Process exited.

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