Error message: " Couldn't create Java Virtual Machine"

Hi,
I recently downloaded from IBM rational application developer for websphere software v 7.5. The installation was successful. But when I try to open it, the error message:"could not create the Java virtual Machine".
I am working on Windows Xp pro. and java is automatically updated the current version jre 1.6/
even I tried to run eclipse from the directory c:/programfiles/IBM/SDP still same problem.
Please some one help me how to fix it.
Thanks.

Do you resolve the problem? If so what was the fix?
I have been getting the Java Virtual Machine Launcher error message Could not create the virtual machine when attempting to run an Oracle application that uses JNLP via a browser. Even clicking on componets such as javaw.exe produces the error message. In conjunction with receiving the error message, the application that I am working with will not launch.
I had JRE 5u10 and J2RE 1.4.2u13 installed and thought that installing JDK 5u17 may resolve the issue. I removed JRE 5u10 and J2RE 1.4.2u13 and installed JDK 5u17 (and the included JRE 5u17.) The error message was still there.
I have unistalled (via Add/Remove programs) and reinstalled (via both Win off-line and on-line) JDK 5u17 and JRE 5u17 many times.
During the uninstalls I have received a Java Web Start 1.5.0_17 bad installation error invoking JVM error message.
I have restarted the machine also.
There are some remains of J2RE 1.4.2u13 still on the machine even after the 1.4.2u13 uninstall. The Java\j2re1.4.2_13\lib folder remains.
I am running Win XP SP2 and IE6 SP2.
Note: I cannot use Java 6 since the application that I am working with is Java 5 based.

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Hello Max,
many thanks for your reply and your in my case absolutely correct answer!
In respect to your solution proposal I have renamed my Analysis-workspace folder to "Analysis-workspace-V0"
After I have started the Design Studio 1.2 SP1 a new Analysis workspace folder was created with the typical standard name "Analysis-workspace"
So I have my old Design Studio Application and an new empty Analysis folder.
By the way, in my case in addition to the folder rename it was necessary to change the -Xmx Value (SapDesignStudio.ini File) a little bit lower as in standard (in the DS1.2 SP1 setting) 1024m. To become not the Message "Failed to create Java Virtual Machine" I have changed the -Xmx Value from 1024m to 512m.
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Do you resolve the problem? If so what was the fix?
I have been getting the Java Virtual Machine Launcher error message Could not create the virtual machine when attempting to run an Oracle application that uses JNLP via a browser. Even clicking on componets such as javaw.exe produces the error message. In conjunction with receiving the error message, the application that I am working with will not launch.
I had JRE 5u10 and J2RE 1.4.2u13 installed and thought that installing JDK 5u17 may resolve the issue. I removed JRE 5u10 and J2RE 1.4.2u13 and installed JDK 5u17 (and the included JRE 5u17.) The error message was still there.
I have unistalled (via Add/Remove programs) and reinstalled (via both Win off-line and on-line) JDK 5u17 and JRE 5u17 many times.
During the uninstalls I have received a Java Web Start 1.5.0_17 bad installation error invoking JVM error message.
I have restarted the machine also.
There are some remains of J2RE 1.4.2u13 still on the machine even after the 1.4.2u13 uninstall. The Java\j2re1.4.2_13\lib folder remains.
I am running Win XP SP2 and IE6 SP2.
Note: I cannot use Java 6 since the application that I am working with is Java 5 based.

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@baltwo
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Error message: " Couldn't create Java Virtual Machine"

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