I am having trouble setting the jvm heap min size and max size while running DM-Server in STS.

I am able to set the heap size when I am running DM-Server from command line.
bin/startup.sh(bat)
SET JAVA_OPTS=-Xmx1024m (.bat)
JAVA_OPTS="-Xmx1024m" (.sh)
courtesy:
http://forum.springsource.org/showthread.php?t=69747

While I am running DM-Server from STS in Windows. I could not increase my heap size and as result getting OutOfMemory Exception.

I tried following three things

1. I opened DM-Server configuration; In - "Launch Configuraition add Environment variable; JAVA_OPTS and value as -Xmx1024m
2. I added a OS Envrionment variable - JAVA_OPTS and value -Xmx1024m
3. I add program arguments in Server launch configuration -Xmx1024m

None of these increased memory heap and I am still getting OutOfMemoryException while running DM-Server in STS (windows) and launching the app.

Can anyone please help me on this?