Grab 64bit Java 8u25 allocate more ram, right now its only at 1GB, if you have 32 bit Java that is its limit.
After installing, you should be able to bump it up more, try 2GB
hmm.. actually you have 32 bit Windows 10, I didn't even know that was a thing... that's a problem.
To get 64 bit Java, you need a 64 bit OS, and a 64 bit computer.
Assuming yours is, and you should find out, this would mean a clean wipe and reinstall of your OS with a 64 bit version... which is probably more than you want to do
Usually you don't start servers by clicking on the .jar file. You use a start.bat your launch.bat (or .sh if you're linux). This file is needed to allocate more memory to the server, among other things.