error occurred during initialization of vm could not reserve enough space for object heap

I was facing this error today where everytime I was trying to run my tomcat server in eclipse I was getting

"error occurred during initialization of vm could not reserve enough space for object heap"

It looked like a problem with the heap size VM arguments I  checked my eclipse.ini it had below correct heap size settings, Still I was getting the problem

-Xms256m
-Xmx768m
Soultion

I found that there is another place in eclipse where I had to set these VM aruguments and that was the option under

Windows-->Prefrences-->Java --> Installed JRE
I had to edit the configured JDK and add "-Xms256m -Xmx768m" to Default VM Argument.