This is typically the Windows 2Gb/DLL process limit for 32-bit systems. Java usually (and therefore Eclipse) allocates a contiguous block of memory for its heap. Windows only allows a maximum (normally) of 2Gb for a process on a 32-bit system.
(There are some tricks to raise that to 3Gb.) The annoying issue is that Windows DLLs are likely to be mapped to places in memory that eat into that 2Gb -- although they can be moved by a technique called rebasing. On typical Windows 32-bit systems, depending on what is installed, you can get between 1.2Gb and 1.4Gb in a contiguous chunk, and this, therefore, is the most you can get as a Java heap.
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