While restarting the red5 service on the server, If you get the following error

——————BEGIN SESSION——————
root@server [~]# cd /usr/local/red5
root@server [/usr/local/red5]#sh red5.sh &
An error occurred during initialization of VM
Could not reserve enough space for object heap
could not create the Java virtual machine.
===============================

Then the best solution is to increase the RAM available to the Red5. Locate red5.sh, it is on the red5 folder, and replaces this line:

Code:
export JAVA_OPTS="$LOGGING_OPTS $SECURITY_OPTS $JAVA_OPTS"

with

Code:
export JAVA_OPTS="-Xms512m -Xmx1024m $LOGGING_OPTS $SECURITY_OPTS $JAVA_OPTS"
And restart red5.sh
On our servers at Hosting Marketers, and Red5 Server we actually give more RAM to Red5.
Xms1024m and Xmx2048m
This really depends on the kind of machine you have and the RAM available.