Cannot build a system due to Errors

I'm trying to build a system for the first time (by first time, I mean that this is the first time I have developed on it - it has ran for a colleague), however I get 'Compilation of Java actions failed'.

And then this is always followed by a 'Java heap space' error. I then upped the memory that the app is using to 1024 and then 2048 and still there is a Java heap space error.

I have tried:

-redownloading the app

-redownloading app + modeler

-updating java

-using a postgres (not built in) database

I'm unsure what to do about this, I can't get the system running!

Any help is great.

EDIT: Here is the error I am getting http://i.imgur.com/dkNnSrD.png

Cheers.