How much memory is the server consuming? Did the memory consumption stabilized after it increased or is it increasing all the time? What kind of operations are the users doing? How big are their rosters?
I think that with 512 Ram you should be fine with 300 users. Even if they are concurrently connected.
I have put 256 MB for Java Memory. The Java memory is using 85% of it and it’'s still increasing all the time. The users are just sending messages. At the moment I have at least 100 users connected distributed in 44 groups.
The memory monitor is pretty deceptive – basically, Java will keep using up memory from the heap until it determines that it needs to do a full garbage collection. So, it can look like the memory just keeps going up until after a couple of hours a huge chunk of memory is released. I would pretty much ignore the memory monitor unless you get an OutOfMemory exception in the logs. Also, there are a few tricks you can use to decrease the amount of memory used by Jive Messenger. I’'ll try to post a follow-up with more details in a bit (have to run here).