INFO | jvm 2 | 2013/07/11 04:10:23 | Error occurred during initialization of VM
INFO | jvm 2 | 2013/07/11 04:10:23 | Could not reserve enough space for object heap
INFO | jvm 2 | 2013/07/11 04:10:23 | Error: Could not create the Java Virtual Machine.
It looks like the machine might not have enough memory for the JVM to start? Have you modified the amount of memory in ignition.conf? Is this a 64-bit Ignition on a 32-bit machine?