Local server not starting

Hello,

My local server is not starting after I imported the Connectivity project (W5 - U2). I also gave the proper arguments in launch configuration as - "Dhttp.proxyHost=proxy -Dhttp.proxyPort=8080 -Dhttps.proxyHost=proxy -Dhttps.proxyPort=8080" and imported existing destination properly.

I am getting error as "Server SAP HANA Cloud Platform local runtime failed to start."  In my console I am getting as "Could not create the Java virtual machine. Unrecognized option: - "

Can someone help me here ?

Thanks in Advance,
Ziya

PS: Where as this works fine if I create local server for Hello World program