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For Netbeans 4.0, the config file is now C:\Program Files\netbeans-4.0beta2\etc\netbeans.conf where you need to update the netbeans_default_options property to increase the -Xmx parameter.
Fixed, code will become available in Milestone 4 release
Verification of old issues.
Closing old issues.
Reverting to the original Target Milestone value changed by mistake. Sorry for inconvenience.