Hi Kunal;
Good question. I am not having any such problems with my EAS' on W7 or 2008. However, I did a "FULL" install and defaulted the servers to JDK 1.6 when I installed them originally. I'm not sure what your issues are from.
It does sound like a JVM memory and seems to have been encountered by many Java developers ....
http://stackoverflow.com/questions/88235/dealing-with-java-lang-outofmemoryerror-permgen-space-error
Seems like many people have resolved that problem using JVM over-rides: http://javarevisited.blogspot.ca/2011/09/javalangoutofmemoryerror-permgen-space.html
HTH
Regards ... Chris
