To summarize the information found after the link: The JVM allocates the amount specified by -Xms but the OS usually does not allocate real pages until they are needed. So the JVM allocates virtual memory as specified by Xms but only allocates physical memory as is needed.
You can see this by using Process Explorer by Sysinternals instead of task manager on windows.
So there is a real difference between using -Xms64M and -Xms512M. But I think the most important difference is the one you already pointed out: the garbage collector will run more often if you really need the 512MB but only started with 64MB.