The solution was to add these flags to JVM command line when Tomcat is started:
You can do that by shutting down the tomcat service, then going into the Tomcat/bin directory and running tomcat6w.exe. Under the “Java” tab, add the arguments to the “Java Options” box. Click “OK” and then restart the service.
If you get an error the specified service does not exist as an installed service you should run:
where servicename is the name of the server as viewed in services.msc
Source: orx’s comment on Eric’s Agile Answers.