Getting error while running CLM 4.0.3 : " Processing dump event "systhrow", detail "java/lang/OutOfMemoryError 2013/07/27 15:10:27 - please wait."

Hi All,
i have installed CLM 4.0.3 . After installing it through IBM IM 1.6.2 i have started the express setup to configure it.
At the middle of the configuration process it shows the following error on console and on the UI process is showing the following message

Web UI Message: "The Express Setup is in progress. This may take a few minutes..."

Console Messages:
JVMDUMP032I JVM requested Snap dump using 'C:\Program Files\IBM\JazzTeamServer
6_July\server\Snap.20130727.151014.3688.0006.trc' in response to an event
UTE001: Error starting trace thread for "Snap Dump Thread": -1
JVMDUMP010I Snap dump written to C:\Program Files\IBM\JazzTeamServer_26_July\s
ver\Snap.20130727.151014.3688.0006.trc
JVMDUMP013I Processed dump event "systhrow", detail "java/lang/OutOfMemoryErro
.
JVMDUMP039I Processing dump event "systhrow", detail "java/lang/OutOfMemoryErr
" at 2013/07/27 15:10:27 - please wait.
JVMDUMP032I JVM requested Heap dump using 'C:\Program Files\IBM\JazzTeamServer
6_July\server\heapdump.20130727.151027.3688.0007.phd' in response to an event
JVMDUMP010I Heap dump written to C:\Program Files\IBM\JazzTeamServer_26_July\s
ver\heapdump.20130727.151027.3688.0007.phd
JVMDUMP032I JVM requested Java dump using 'C:\Program Files\IBM\JazzTeamServer
6_July\server\javacore.20130727.151027.3688.0008.txt' in response to an event


Is this related to the tomcat server heap size?
I have tried by adding the set CATALINA_OPTS=-Xms512m -Xmx512m  in the catalina .bat but still facing the same issue.
Any pointers regrading this errors ?

Thanks ,
Rahul