java.lang.OutOfMemoryError: GC overhead limit exceeded

We are having some issues with our development environment related to performance. RTC 3.0.1 client is installed onto RSA 8. The project has over 90K files and folder in four components.

Eclipse starts ok and then begins to slow are after time. This error is thrown java.lang.OutOfMemoryError: GC overhead limit exceeded and eclipse needs to be shutdown.

Also in the log file attached there are a number of RTC related exceptions. Could these be causing problems.
Plug-in com.ibm.xtools.modeler.ui.jazz was unable to load class com.ibm.xtools.modeler.ui.jazz.internal.handlers.ModelerHyperlinkHandler.

~~~~~ eclipse.ini ~~~~~~~~~~~

-startup
plugins/org.eclipse.equinox.launcher_1.1.1.R36x_v20101122_1400.jar
--launcher.library
plugins/org.eclipse.equinox.launcher.win32.win32.x86_1.1.2.R36x_v20101222
-product
org.eclipse.epp.package.java.product
--launcher.defaultAction
openFile
--launcher.XXMaxPermSize
256M
-showsplash
org.eclipse.platform
--launcher.XXMaxPermSize
256m
--launcher.defaultAction
openFile
-vm
E:/NCFAST/DevTools/jdk1.6.0_24/bin/javaw
-vmargs
-server
-Dosgi.requiredJavaVersion=1.5
-Xms1024m
-Xmx1024m
-Xmn128m
-Xss2m
-XX:+UseParallelGC