How to tweak this eclipse.ini file to improve the performance of eclipse(Helios)?

Give it more memory. Make it something like -Xmx2g. This way if eclipse ever needs more memory it will be able to use it, if not then it will keep using the same amount of memory it always does.

One option could be to ensure that Eclipse is started with a more current JDK. Currently, you only demand that Java version should be at least 1.5. If your Eclipse is really running with JDK 1.5, going to Java7 will give you a way much better performance, and I suspect start-up performance as well.

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