Android Studio Error -- Could not create the Java Virtual Machine

:app:dexDebug Error: Could not create the Java Virtual Machine. Error: A fatal exception has occurred. Program will exit. FAILED FAILURE: Build failed with an exception. * What went wrong: Execution failed for task ':app:dexDebug'. > com.android.ide.common.internal.LoggedErrorException: Failed to run command: E:\Program Files\adt-bundle-windows-x86-20140702\sdk\build-tools.1.2\dx.bat --dex --no-optimize --output E:\android\workspace\DialogDemo\app\build\intermediates\dex\debug --input-list=E:\android\workspace\DialogDemo\app\build\intermediates\tmp\dex\debug\inputList.txt Error Code: 1 Output: Error: Could not create the Java Virtual Machine. Error: A fatal exception has occurred. Program will exit. * Try: Run with --stacktrace option to get the stack trace. Run with --info or --debug option to get more log output. BUILD FAILED Error: Could not create the J