For what it's worth, I tried placing the file 'java.opts' in my $MATLABROOT/bin/$ARCH directory and added the two lines to it:
-Xmx1512m
-Xms128m
I get the same error as before, except now it tells me to check my java.opts file. It seems like, maybe, my specified options are getting overwritten somehow? Is there a better place to set this option for verison R2012a?
New Error:
Invalid maximum heap size: -Xmx6057m
The specified size exceeds the maximum representable size.
Fatal Error on startup: Unable to start the JVM because of an invalid Java option.
Please check your java.opts file.