> I am using saxon 8.3 with several input docs (>40M) while 
> outputting to over 
> 1000 xml files and get this error.  I have read about 
> allocating more memory 
> to java. How is this done? Can this be corrected? 
> 

Try 

java -Xms512m -Xmx512m -jar saxon8.jar source.xml style.xsl

to allocate 512Mb, which should be enough for 40Mb of input unless the
transformation uses a lot of temporary storage.

Michael Kay
http://www.saxonica.com/