First of all you cannot change the memory settings only for a tomcat application but rather for all tomcat instance.
If you are running tomcat from console (using startup.bat) you'll need to edit catalina.bat and play around with CATALINA_OPTS. For example:
set CATALINA_OPTS=-Xms512m -Xmx512m
Restarting tomcat will apply the new settings.
If you are still getting OutOfMemoryError you need to know how much memory does your application need at that particular moment (nom.tam.util.ArrayFuncs...). You'll either have to optimize the application or simply increase the memory provided to tomcat.