Java HotSpot Virtual Machine

Hi,
I am facing Out of Memory Error in my application.

Problem Explanation
I am running two applications one is running in the weblogic server (version 7.0 sp2) this will post the data to particular port, from that port my another application (thread application) will collect the data and write into file once dump is over I am clearing the collected data and again collecting fresh data from server. I configured java virtual machine size �ms256 �mx256 for weblogic server and �ms16 �ms32 for my application. This two application is running in different JVM. When I start the application it�s starting smoothly and collecting the data after some time I am facing the Out of Memory error. I explicitly configured the application to get the outofMemory error because whenever out of memory error occurs I need to handle that error. For solving this problem I am restarting the second application, which is collecting the data from weblogic port. Still I am facing the same problem.

Is there any bottleneck in my application?

If I restart the both application it�s running smoothly. Is there any other solution to solve this problem?

Can anyone help me in this?

Thanks and Regards
Suresh Nalliannan