Running Multiple JVM's on same Server has OutOfMemory - PermGen Errors

I have a scenario where I have 2 application servers. One is running one JVM and the other is running multiple JVMs.
Both are configured with:
-XX:+UseConcMarkSweepGC
-XX:+UseParNewGC
-XX:MaxPermSize=256m
-XX:+CMSPermGenSweepingEnabled
-XX:+CMSClassUnloadingEnabled
The server that is running with only 1 JVM runs stable, however the server that is running multiple JVMs has frequent crashes due to OutOfMemory - PermGen errors. The only other difference is the Heap size. 512mb for each JVM on the app server with multiple instances and 1GB for the server with 1 instance. Is there a relationship/settings that need to be tuned when running multiple JVM's on the same server to avoid this?
Thx

The only other difference is the Heap size. 512mb for each JVM on the app server with multiple instances and 1GB for the server with 1 instance.This isn't a trivial difference. Basically you're saying "When I give the server 1 GB then it's okay but when I give it 512 MB it's not okay." If I saw those symptoms I would take them at face value to start with.
So, turn off one of those servers on the machine that has two. Don't change anything else. Testable prediction: That won't fix your problem.

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Running Multiple JVM's on same Server has OutOfMemory - PermGen Errors

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