I have had this problem in the past. I fixed it by addind a PermSize and 
MaxPermSize to my Java Opts in $JAVA_HOME/bin/run.conf

Also see the wiki reference for more information on this.
http://wiki.jboss.org/wiki/Wiki.jsp?page=OutOfMemoryExceptionWhenRedeploying

<snip - from my run.conf>
# Added the PermSize and MaxPermSize to fix the java.lang.OutOfMemoryError: 
PermGen space error
# see: 
http://wiki.jboss.org/wiki/Wiki.jsp?page=OutOfMemoryExceptionWhenRedeploying
JAVA_OPTS="$JAVA_OPTS -XX:NewSize=128m -XX:MaxNewSize=384m -XX:PermSize=128m 
-XX:MaxPermSize=128m -Xmx512m -Xms512m -XX:+DisableExplicitGC"

HTH.


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