How to fix the PermGen Space (Out of Memory) Error in Eclipse

Problem: PermGen Space (Out of Memory)

Cause: PermGen is the permanent generation of objects in the VM (Class names, internalized strings, objects that will never get garbage-collected).
The memory limit is too small that the Eclipse quickly runs out of memory, causing the aforesaid error.

Solution: Increase the permanent generation space available to Eclipse by adding the following in eclipse.ini
-XX:MaxPermSize=256m

-vm C:\Program Files\Java\jdk1.7.0_15\jre\bin\server -startup plugins/org.eclipse.equinox.launcher_1.2.0.v20110502.jar --launcher.library plugins/org.eclipse.equinox.launcher.win32.win32.x86_64_1.1.100.v20110502 -product org.eclipse.epp.package.jee.product --launcher.defaultAction openFile --launcher.XXMaxPermSize 256M -showsplash org.eclipse.platform --launcher.XXMaxPermSize 256m --launcher.defaultAction openFile -vmargs -Dosgi.requiredJavaVersion=1.5 -Xms40m -Xmx512m -XX:MaxPermSize=256m