>          I am having a transformation in which the source file size is
> large. The source xml size is around 200 MB. So my 
> transformer throws Out of
> Memory exception after some time. I am using Xalan. This 
> issue also comes
> when i use Saxon transformer. Is there a way by which i can set some
> transformer parameter to overcome this problem.

You can set the amount of memory allocated to java using something like

java -Xms1024M -Xmx1024M net.sf.saxon.Transform ....

(or similarly for Xalan, of course).

I wouldn't attempt this with less than 1Gb of main memory.

If the transformation is essentially serial, take a look at 

http://www.saxonica.com/documentation/sourcedocs/serial.html

to see if it provides a way forward.

Michael Kay
http://www.saxonica.com/