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Portlet out of memory problem

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I have a existing jsf web application that use axis2 stub to call another service which is working. After I make the neccessary configuration to change it to portlet and run on jboss portal, I encountered out of memory error as below.

08:10:38,226 FATAL [application] java.lang.OutOfMemoryError: PermGen space
08:10:51,695 WARN [arjLoggerI18N] [com.arjuna.ats.arjuna.coordinator.BasicAction_41] - Abort called illegaly on atomic action -53efadae:600:4795963f:2de

If I don't call the stub everything works fine. I have already increased the memory size of jboss to 1024M but still it occurs. Has anyone face this error before?
I am using jboss portal 2.6.3. My application also use spring and hibernate but I don't think thats the problem.
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