Merge fails complaining on java heap memory problems

Issue:

When trying to merge two (close to one another in the history) versions
of an ascii file the merge gets stack.
In the log files (both classic client and java client) there is an error
message:

06/15 08:51:10 An internal error has occurred at Mon Jun 15 08:51:10 IDT
2009
06/15 08:51:10 Unhandled runtime exception: java.lang.OutOfMemoryError
06/15 08:51:10 Exception Message: Java heap space
06/15 08:51:10
06/15 08:51:10 Stack trace:
06/15 08:51:10 java.lang.OutOfMemoryError: Java heap space

Vendor Solution:
If the size of the file is larger then 300k the following procedure worked:

1) Look for the file msynergy.lax Under the bin directory of the client
installation.

2) open the file and look for the option:
lax.nl.java.option.java.heap.size.max=90M

3) Uncomment this option by removing the pound sign (#)

4) Set the max size to 200MB

5) Save the file and restart the session, merge again.