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Eclipse basically is running the java engine, which sets aside 256MB of memory for use in the virtual machine. You can pass arguments on to the java program from the eclipse command line. So the get the most out of the memory you've got on your machine, run eclipse with the following parameters:

where you put in the size of your memory after the mx. 1G is shown here as an example. You can use abbreviations like 512M, 1k, etc. and the java engine will understand them.