This post explains why you might see the “Could not create the Java Virtual Machine” error when creating a SWF or SWC in FlasCC.
When the FlasCC binaries invoke the JVM, the default heap size is set to 2GB. If you are using FlasCC on a machine that does not have sufficient memory, you may see errors like:
Error: Failed to execute compiler: Error occurred during initialization of VM
Could not reserve enough space for object heap
Error: Could not create the Java Virtual Machine.
Error: A fatal exception has occurred. Program will exit.
If you run into these errors, you can tweak the JVM heap size by adding the -jvmopt option to the command line options, for example:
gcc -jvmopt="-Xmx1024M" hello.c -o -emit-swf -o hello.swf
Also if you are running on a machine that has spare memory, then you can use the same -jvmopt option to bump up the heap size from its default size.
If you run into issues please ask questions in the FlasCC forums.

>if you have 32-bit JAVA, uninstall it, and install 64-bit
…also add JAVA bin folder to your PATH environment variable, default: C:\Program Files\Java\jre7\bin) ..<
hello,guys,i have met the same question this morning,but it is a little diffrent,i install 64-bit jre,and add the path.but flassCC still show “jvm ” can not be found.but in the cmd line i can see the jvm exist in my system.and is 64bit!it waste my whole morning,so if you can give me some suggestions,i will be so appreciated!
@tony – The FlasCC Forums are probably a better place to discuss your issue. I see you have already posted there (http://forums.adobe.com/message/5018487#5018487). Let’s continue the conversation there.